State-owned Oil and Natural Gas Corporation has approached Securities and Exchange Board of India seeking to reserve shares for shareholders of group companies, including Mangalore Refinery, in its upcoming public offer for ten per cent government equity slated to hit the market in March.
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The PSU oil major has asked the capital markets watchdog for permission to set aside a certain portion of its equity on offer for the benefit of shareholders of its group companies, excluding government and units of public sector undetakings, sources associated with the deal said.
The move comes as the current guidelines for reserving shares during public offers do not envisage quotas for this particular category.
Sebi guidelines permit quotas for employees besides other categories like high net worth individuals, qualified institutional buyers and retail investors.
However, it is not clear how much the corporation has sought for this category.
ONGC has already sought several exemptions from Sebi guidelines including a wider price band for quotes ranging upto 30 per cent as against the prescribed norm of 20 per cent.
Besides, it has also sought declaration of price band for bidding a day ahead of the issue date.
The government in December decided to sell 10 per cent stake each in the two oil giants ONGC and Gail after receiving a setback from the Supreme Court on the privatisation of Hindustan Petroleum Corp and Bharat Petroleum Corp.