ONGC, IOC offers to hit market in Q4

After the success of Coal India and PowerGrid issues, the government on Thursday said Manganese Ore India Ltd (MOIL) will come out with its initial public offer (IPO) on November 26, while offers of oil majors Oil and Natural Gas (ONGC) and Indian Oil Corporation (IOC) will hit markets in the last quarter of this financial year.

In reply to a question, Disinvestment Secretary Sumit Bose told reporters that his department was not raising the target of Rs 40,000 crore mop-up through share sale in PSUs for this year.

He also disclosed that Shipping Corporation of India has filed red herring prospectus with market regulator Securities and Exchange Board of India (Sebi).

Nagpur-based MOIL will hit markets with its IPO on November 26, while IOC and ONGC follow-on public offers (FPOs) will come during January-March 2011, Bose said.

MOIL will sell a total stake of 20 per cent, out of which the Centre's shares will account for 10 per cent of the total equity. Madhya Pradesh and Maharashtra governments will divest 5 per cent stake each in the undertaking.

Earlier, MOIL Chairman K J Singh had said the initial public offer (IPO) will consist of total 3.38 crore shares.

While, two per cent shares will be reserved for employees, retail investors will get 5 per cent discount.

The government is aiming to raise up to Rs 1,500 crore through the MOIL offer.

IOC has already appointed six merchant bankers to handle its issue, comprising fresh equity issue of 10 per cent and disinvestment of 10 per cent. Sources said the government intends to raise about Rs 24,000 crore through 10 per cent stake sale in IOC.

Besides, the government will disinvest 5 per cent in ONGC.

Shipping Corporation of India is likely to hit the markets with Rs 1,300 crore FPO by the end of this month or early December.

"We are hopeful of coming out with an follow-on offer by end of this month or early December," SCI's Chairman and Managing Director S Hajara had said last week.

The government in October, had approved selling its 10 per cent stake, comprising of 42.35 million shares, in Shipping Corporation of India.

It had allowed the company to issue fresh equity to the tune of 10 per cent of the paid-up capital.