ibnlive » Business

Mar 02, 2012 at 08:32am IST

ONGC auction through; BHEL divestment on hold

New Delhi: The whole ONGC auction confusion has taken its toll on the government's disinvestment plan as this was being seen a test case for more such deals. As a result the divestment of Oil India and heavy engineering goods firm BHEL have been put on hold.

Heavy Industries and Power Enterprises Minister Praful Patel had earlier said that it would happen during the next fiscal. The government is looking to divest out its 67.72 per cent equity shareholding in BHEL.

ALSO SEE Mystery ends; ONGC auction is through, says govt

After some hiccups and a late government intervention, the sale of government's 5 per cent stake in ONGC through an auction finally managed to sail through with an estimated proceeds of about Rs 12,000 crore to partly meet the disinvestment target of current fiscal on Thursday.

Hectic parleys were held for more than four hours after the end of the auction process at 1530 hours and a final tally of the bids remained elusive for that time.

Late in the night, top finance ministry officials confirmed that the share sale has been a success and the government has raised the desired proceeds from the auction.

After putting the final bid tally after the end of the auction at about 22.9 crore shares, as against total offer size of 42.77 crore shares, the stock exchanges also later said that the issue has got fully subscribed in the auction, where the floor price was fixed at Rs 290 a piece.

(With additional information from PTI)

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