Meanwhile, prior to this the government postponed the share sale of ONGC and SAIL following upheaval in the share bazaar.
Currently, ONGC is well equipped with all necessary approvals. However, the government is waiting for market regulator Sebi to take the final call regarding the allowing promoter with more than 75% stake in private sector companies and the government with more than 90 per cent stake in PSUs to reduce their holding through an auction to institutional players.
Meanwhile, the divestment comes in line with government approving the plans to sell 5 per cent equity in ONGC through a follow on offer. Currently, the government holds 74.14 per cent in ONGC which after the share sale would come down to 69.14 per cent.
Additionally, the department of disinvestment (DoD) has been trying to explore different options for selling shares to meet its target. It has been planning to use methods such as buyback and cross-holding among state-run companies.
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