The much awaited follow-on public offer (FPO) of ONGC is unlikely to be kicked on July 5, reports CNBC-TV18’s Nayantara Rai quoting sources. It is learnt that there are overhangs on ONGC that may lead to the delay of the FPO.
Firstly, there is no clarity on the subsidy burden that that oil market company is supposed to shell out. Another concern that ONGC is facing is the royalty issue vis-à-vis Cairn India at Rajasthan.
Meanwhile, the government also looks uninterested in the FPO anytime soon as the three independent directors have still not been inducted in the company.
However, AK Hazarika, the chairman of company had said in an earlier interview to CNBC-TV18, that the government is considering July 5 as the launching date of the FPO. Hazarika had also informed that the company will kick-off road show on June 19. The noise about the road show is still missing among the investor community and fund houses.
Source: www.moneycontrol.com
Ravi Jhawar
Summer Intern-Technical Analyst
DENIP Consultants Pvt. Ltd.
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