Govt approves ONGC share split

Besides,it is believed to have approved a 1:1 bonus issue 1 share for every share held.

However,no official comments could be obtained.

State-owned Oil and Natural Gas Corporation ONGC had suggested to the government that the company8217;s stock be split ahead of the FPO 8212; through which the government plans to sell 5 per cent of its shares and expects to mop up Rs 10,800 crore.

Post offer,the government shareholding in ONGC would come down to 69.14 per cent from current 74.14 per cent.

Shares of ONGC closed up by Rs 40.30,or 3.23 per cent,at Rs 1,288.50 a piece on BSE today.

ONGC had appointed two international auditorsDeGolyer and MacNaughton and Gaffney,Cline and Associates8211; to certify its oil and gas reserves.

ONGC,which usually gets its reserves audited every five years,is getting a certification in the third year because of the planned FPO.