Oil and Natural Gas Corp FPO Deferred

Online, March 11, 2011 (Newswire.com) - The Follow-on Public Offer (FPO) of state-owned Oil and Natural Gas Corp, or ONGC, has been deferred by the Government to later half of the year 2011, following a faux pas in the appointment of independent directors on ONGC's board. The government has planned to sell 427.77 million equity shares, which makes up to be 5%, to raise up to Rs 12,000 crore. The sale was planned to be opened on 5 April 2011.

ONGC did not meet comply with the listing norm established by the market regulator SEBI that requires the company board to have equal number of independent and functional directors. As a measure, both the nominee directors have been withdrawn by the government. According to an official, "the consequences of withdrawing government directors were too grave and so it has been decided to make regular appointment of independent directors and till such time, the FPO will be deferred."

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