ONGC gains on planning to sell stake in IOC to LIC

Oil and Natural Gas Corporation (ONGC) is currently trading at Rs. 171.30, up by 0.35 points or 0.20% from its previous closing of Rs. 170.95 on the BSE.

The scrip opened at Rs. 171.00 and has touched a high and low of Rs. 172.15 and Rs. 171.00 respectively. So far 66,000 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 5 has touched a 52 week high of Rs. 212.00 on 31-Jan-2017 and a 52 week low of Rs. 155.30 on 27-Jun-2017.

Last one week high and low of the scrip stood at Rs. 174.55 and Rs. 170.15 respectively. The current market cap of the company is Rs. 2,19,704.00 crore.

The promoters holding in the company stood at 68.07%, while Institutions and Non-Institutions held 18.08% and 13.85% respectively.

ONGC is planning to sell some of its stake in Indian Oil Corporation (IOC) to institutional investors like Life Insurance Corporation of India (LIC) to part-fund its over Rs 34,000 crore acquisition of refiner Hindustan Petroleum Corporation (HPCL).

The acquisition of 51.11 per cent government stake in HPCL will be funded through a combination of market borrowing and selling some stake in IOC and GAIL

ONGC holds 13.77 per cent stake in India's biggest refiner IOC, which currently worth over Rs 27,800 crore. It has another 4.87 per cent stake in GAIL India worth of Rs 1,600 crore.

ONGC is India's largest government-run corporation and produces about 70% of India's crude oil and natural gas. The corporation is the biggest public sector commercial organization in India.