ONGC, Gail public issue likely to open on March 10

The public offer for offloading 10 per cent equity in ONGC and Gail is likely to open on March 10. According to the tentative schedule drawn by the merchant bankers for the public issue of 14.2 crore equity shares of ONGC and 8.4 crore equity shares of Gail, bids under the book-building process would be invited from March 10 to March 16, with share allotment and price fixing slated for March 26.

An inter-ministerial group (IMG) is expected to meet soon to finalise the time-table for public issues, sources said. Government is expected to file the draft prospectus for Gail issue by January 20 and for ONGC by the month end. Sources said that the book runners are currently carrying out due diligence. “We hope to receive the comments of Sebi on the draft prospectus by February 23 and a final prospectus would be filed with the registrar of the companies by end of February.”

Roadshows for the twin public issues, which at current prices could rake in over Rs 12,500 crore for the government, are slated in the first week of March. While a consortium of Kotak Mahindra Capital Co, DSP Merrill Lynch and JM Morgan Stanley are the book runners for the ONGC issue, ICICI Securities and HSBC Securities and Capital Markets are advising government for the Gail issue.

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The CCD had on December 23 last decided to sell 10 per cent equity each in ONGC and gail through public offers in domestic capital markets. The idea was first mooted by the petroleum ministry in mid-November.

The Government is faced with a huge deficit in its Rs 13,200 crore revenue mobilisation target from disinvestment. Till November 20 last, about Rs 1335 crore had been realised, which is a little over 10 per cent of the target for 2003-04.