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Not the right time to divest: Oil and Natural Gas Corporation

State-run explorer Oil and Natural Gas Corporation has cautioned the government that it would not be prudent to divest stake in the company without clearing the air on key policy issues pertaining to gas pricing and sharing of fuel subsidy. The government holds 68.94 Percent in ONGC and plans to disinvest 5 Percent stake, or 42.77 crore shares, this fiscal for INR 17,400 crore, estimated at current share price. The divestment process is expected to kick off in September with 5 Percent offering in SAIL. In a communication to the parent oil ministry, ONGC has said the government is unlikely to realise the true potential/value of shares if these are sold at this point when the key issues remain fuzzy to investors.

Source-On Request