Saturday, March 3, 2012

LIC ploughs in more than Rs.12,000 crore

After a day of confusion, supposedly owing to technical glitches, and state-owned insurer Life Insurance Corporation (LIC) coming to rescue the 5 per cent stake sale of ONGC through the auction route, the government on Friday announced that it had received an average price of Rs.303.67 for a share of the oil major, which is 4.71 per cent higher than the reserve price, to mop up a total of Rs.12,766.75 crore.

Official sources confirm that LIC ploughed in more than Rs.12,000 crore to purchase 95 per cent of the ONGC's equity stake on offer. The state insurer purchased 40 crore shares, ostensibly owing to the fact that there was no participation from FIIs and also retail investors, who were looking for a discount on the market price of ONGC scrips

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