Five advisors likely for GAIL, ONGC offer

The government is likely to appoint five advisors for the process of offloading 10 per cent stake each in oil and gas PSU majors ONGC and GAIL. While three advisors could be given mandate for divestment of 10 per cent equity in ONGC, another two could take charge for GAIL issue for sale of 10 per cent of shares.

The public offers of 10 per cent stake in these two companies are slated to hit the market in this financial year. Efforts are on from the ministry of disinvestment to complete the process and put it on track in this fiscal. According to sources associated with the process, a limited number of merchant bankers have made their presentations following a deicison to restrict the participation to those who had either been shortlisted or selected in last four disinvestment cases.

As of now, DSP Merill Lynch, Kotak, Morgan Stanley, ICICI Securities and HSBC are in the race for being appointed as advisor for ONGC issue, sources said.

Disinvestment ministry has not ruled out possibility of going for an ADR float, saying it would be depend upon the depth of the domestic market. However, the government would first look at the domestic market and in case there is a lack of depth in the domestic market then the government would go back to the CCD with a proposal for tapping the overseas market.