The divestment ministry has turned down Gail India Ltd's proposal to go for a Global Depository Receipt issue as part of the government's plans for divestment of 10 per cent equity, and has asked the company to stick to its earlier plans of tapping the domestic market.
According to sources, the ministry has written to Gail, clarifying that GDR was not envisaged as part of the proposal by the government to offload its 10 per cent stake through public offer.
Gail had proposed a GDP issue of 2.5 per cent of its equity in case domestic retail investors do not subscribe to the public offering of 8.4 crore (84 million) equity shares planned by the government in March.
The company felt that retail investors might not be interested in Gail issue after the mega issues of ONGC, IBP, CMC and IPCL.