ONGC's Rs 12,000-crore follow-on public offer (FPO) was under a cloud late on Thursday as bureaucrats and bankers bickered over pricing, while investors were worried about uncertainties in the government's subsidy regime in the oil sector.
Some bankers managing the issue, which was scheduled to open next Tuesday, said the timing of the issue would be finalised at a meeting with the department of disinvestment on Friday.
A TV news report said the issue may be deferred by two weeks. One source close to the company said the final decision would shortly be taken by Finance Minister Pranab Mukherjee.
The move to defer the issue gathered steam a day after a team of bureaucrats and top ONGC officials returned from a series of international road shows. Former ONGC chairman RS Sharma said the time is not ripe for the FPO. "I am relieved. The market feedback of the FPO was not very en-couraging. The current market situation is not appropriate. Ad hoc fuel subsidy burden on ONGC is a major concern for investors. FPO should be launched only after uncertainty over subsidy is over."
Some bankers managing the issue, which was scheduled to open next Tuesday, said the timing of the issue would be finalised at a meeting with the department of disinvestment on Friday.
A TV news report said the issue may be deferred by two weeks. One source close to the company said the final decision would shortly be taken by Finance Minister Pranab Mukherjee.
The move to defer the issue gathered steam a day after a team of bureaucrats and top ONGC officials returned from a series of international road shows. Former ONGC chairman RS Sharma said the time is not ripe for the FPO. "I am relieved. The market feedback of the FPO was not very en-couraging. The current market situation is not appropriate. Ad hoc fuel subsidy burden on ONGC is a major concern for investors. FPO should be launched only after uncertainty over subsidy is over."
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