The Oil and Natural Gas Corporation on Friday said it was not against the government's move to dilute its five per cent stake in the public sector undertaking through an initial public offer or by diluting the cross holding of shares between ONGC, Indian Oil Corporation and Gas Authority of India Ltd.
"The government as an owner has the right to dilute its stake in ONGC through an IPO or through diluting cross holding," ONGC chairman and managing director Subir Raha told reporters in Bangalore.
He said IOC and Gail held 12 per cent of shares in ONGC, while ONGC owned nine per cent stake in IOC.
Asserting that ONGC had enough funds to sustain, Raha said the company itself had no intention to raise funds through the IPO route in the near future.
"We don't need to go for an IPO at this point of time. As far as ONGC is concerned, in future we can raise resources either through IPO or debt," he said.
"There is a possibility," Raha said when asked whether the government may take a decision in the current financial year on diluting its stake in the gas major as part of its divestment process.
Currently, he said, about four per cent of ONGC stake was traded in the stock market and even one per cent addition would increase the market capitalisation by Rs 1,000 crore (Rs 10 billion).
Raha said ONGC planned to introduce an employee stock option scheme from the next year and a consultant had been hired for this purpose.
