ONGC, the
state-owned oil & gas major, may finally see the light on its
follow on public offer (FPO) with a group of ministers set to meet on Wednesday to discuss the sale of government's 5 per cent stake in it.
The group of ministers, headed by Finance Minister Pranab Mukherjee, will decide on the stake sale in
Oil and Natural Gas Corporation (ONGC) which is expected to raise Rs 12,000 crore for the company.
"The GoM is to meet tomorrow to
consider proposals relating to disinvestment in ONGC," Indian Oil Minister S Jaipal Reddy told reporters.
The GoM had earlier this month postponed a decision on the mode of selling stake in ONGC.
"This may perhaps be the last (GoM meeting) before Budget (for 2012-13 is presented in Parliament on March 16)," he said.
Reddy, however, refused to hazard a guess on the GoM decision. "I cannot anticipate what the GoM will decide."
The government had in November last year put on hold a proposal to sell 5 per cent of its stake in ONGC through a public offering.
"Auction involves very little paperwork and the whole process can be done very quickly," a source said.
Capital market regulator Securities and Exchange Board of India (Sebi) had recently announced rules for the sale of shares through auctions to institutional investors.
The government owns 74.14 per cent stake in ONGC and plans to sell 427.77 million shares, which will trim its holding to 69.14 per cent.
- With PTI inputs 
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