India’s Largest Energy Firm Offers New Shares at Premium Price
India’s Oil & Natural Gas Co. (ONGC) will offer a 5% stake in the company (about 428 million shares) tomorrow at a 2.3% premium to the share price at closing on Tuesday. The minimum per share price will be 290…
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India’s Oil & Natural Gas Co. (ONGC) will offer a 5% stake in the company (about 428 million shares) tomorrow at a 2.3% premium to the share price at closing on Tuesday. The minimum per share price will be 290 rupees (about $5.91).
The Indian firm expects to raise $2.5 billion which appears to be headed into the country’s treasury to help meet a budget deficit target of 4.6% of India’s GDP. The Indian government owns 74% of ONGC.
Indian citizens have opposed the sale of the country’s assets to meet budgetary targets. Unions and government employees fear job cuts as a result of the sales.
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
