Oil and Natural Gas Corporation expects to hit the market with a public offering of ten per cent government equity by early March, a top official said on Wednesday.
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ONGC chairman Subir Raha said the draft prospectus for the offering is expected to be filed with capital markets watchdog Securities and Exchange Board of India by the end of January.
The corporation expects approval from the regulator by mid-February following which roadshows would be held in India and abroad, he said.
The roadshows would be held in overseas destinations including Los Angeles, New York, Hong Kong, Singapore, London and Dubai. The marketing exercise would also be held in several locations across the country including far-flung areas like Guwahati and Kohima.
Government, in December, decided to offload ten per cent equity each in ONGC and Gas Authority of India Ltd through public offering. Earlier this month, the inter-ministerial group on divestment decided to target the issue for the first week of March after finalising Crawford and Bailey as legal advisors.
Raha said the price band for the book building issue would be determined after the roadshows while the final offer price and allotment would be settled by government in the second week of March.
The shares would be offered in lots of five or ten, he said and ruled out a spilt in the shares.
The government currently holds around 84 per cent stake in ONGC while the remaining is shared by other public sector oil companies under a cross holding deal in 1999.