The government has decided to put follow-on public offer (FPO) of Oil and Natural Gas Corporation ( ONGC ) on hold, reports CNBC-TV18.
ONGC, in a notice sent to the exchange, said the selling shareholder has decided not to proceeds with issue. "We shall evaluate decision on issue in due course," the notice stated.
The FPO has been deferred for a short period, not put off indefinitely, clarified economic affairs secretary R Gopalan.
Gopalan is also confident of meeting FY12 divestment target of Rs 40,000 crore. However, he added, "We can't go ahead with divestment in volatile market. We don't want to sell PSU stocks recklessly."
“Markets should not hammer stocks on divestment news," he felt.
At 09:41 hours IST, the share was trading at Rs 274.70, up Rs 14.60, or 5.61%, with volumes of 874,095 shares, which increased 200% compared to 5-day average of 293,819 shares.
Market capitalisation stood at Rs 235,019.31 crore.
Yesterday, govt also hiked petrol prices by Rs 3.14 per litre, which also boosted the stock because the subsidy sharing burden with oil marketing companies would be lower going forward.
Source: www.moneycontrol.com
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