As many as 14 merchant bankers, including Citigroup Global, Barclays Plc and Morgan Stanley, have made a beeline for managing the 5 per cent stake sale of ONGC, which could fetch over Rs 17,000 crore to the exchequer.
Others who have applied for the job include Deutsche Equities, HSBC Securities, Nomura Financial, JM Financial and SBI Capital. Shares of ONGC on Wednesday closed at Rs 423.80, down 2.62 per cent over previous close on the BSE.
At the current market price, a 5 per cent stake sale or over Rs 42 crore would fetch about Rs 17,800 crore to the exchequer. The merchant bankers would advise the government on the timing and the modalities of the Offer For Sale (OFS) and ensure best return to the government. The disinvestment department will appoint up to five merchant bankers to manage the OFS.