ONGC FPO to open on 5th July

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ONGC FPO to open on 5th July
Public sector Company, Oil and Natural Gas Corp's (ONGC) further public offer worth Rs 11,500 croreis finally to be opened on July 5, 2011. The government plans to sell 5 per cent stake in the company (427.77 million shares) through the FPO and the FPO will close on July 8. FPO is being managed by Bank of America Corp, Nomura Holdings, HSBC Holdings Plc, JM Financial Services, Citigroup Inc and Morgan Stanley.

The FPO has been deferred twice as the company did not have adequate number of independent directors on its board to meet the market regulator SEBI's listing norm. ONGC has six functional directors, chairman and two government-appointed nominee directors, taking the total strength of functional/promoter directors to nine.

However, it currently has five independent directors and appointment of three directors would help ONGC meet Sebi norm. Former RBI Deputy Governor Usha Thorat and former Finance Secretary Arun Ramanathan and Deepak Nayyar, ex-vice chancellor of the Delhi University, are being appointed as independent or non-executive directors on the ONGC Board.

Commenting on the issue, ONGC official said, "As per the scheduled drawn by the Department of Disinvestment in the Ministry of Finance , ONGC will file red herring prospectus (RHP) for the public offering around June 15," and added "Roadshows to promote the FPO would begin soon after."

Read more about: ongc, fpo, bse, nse, oil and gas
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