Latest News
-
Rs 7.50/Share Dividend: Adani Group Cement Company Reports Strong Q4 Results; Profit Surges 2x YoY -
Closing Bell: Market Rebounds To End With Gains For 5th Straight Day; Sensex & Nifty Soar Led By Banks -
Gold Prices Ayodhya: In Ram-Janma-Bhumi, 24carat Falls By Rs 380 In 10-Grams, Drops By Rs 3,800 In 100-gram -
Penny Stock Hits 2nd Upper Circuit After Declaring Earnings, Gains 14% In 1-Week -
Rs 8.50/Share Dividend Recommended: Nestle India Reports 27% YoY Jump In Profit -
0.50% Dividend Yield: Midcap Cement Stock Slumps 10% Following Weak Q4 Results; Profit Down 48% YoY -
1:10 Split, Rs 147/Share Dividend: FMCG Major Likely To Report Profit Growth; Buy Or Sell? -
Mark Zuckerberg's Meta Reports Record Q1 Profit Surge, Projects AI Investments This Year; Stock Slumps -
Gold Prices India: 24K/100 Grams Yellow Metal Falls By Rs 3800, 24K/10 Grams Down By Rs 380 -
Rs 44,000 Crore M-Cap Lost, Stock Falls 10%, No More 4th Largest Bank; How RBI's Ban Rocked Kotak
LIC continues to see ONGC portfolio value fall
The Union Budget 2012 raised the cess on domestic crude oil from Rs 2,500 per metric tonne to Rs 4,500 per metric tonne, which saw the ONGC share price react, thus eroding LIC's portfolio value of ONGC.
LIC recently bailed out the ONGC auction by buying 37.71 crore shares at a total of Rs 11,069.60 crore. Thus, it paid roughly Rs 293 per share. If we now consider the current market price of Rs 270, LIC has lost Rs 23 per share. This translates into a whopping lost of Rs 867 crores on the auction shares which took place earlier this month.
The government may have been in a hurry to do the ONGC auction as they may have known that after levying a cess on crude oil, the ONGC share price would fall and hence fetch them a lower value in the auction.
The government timing for the ONGC auction was hence perfect in doing it a few days before the Union Budget 2012.
GoodReturns.in
