ONGC FPO in this quarter, along with PFC and SAIL: Finmin

The issue of independent directors required on the board of oil major ONGC is likely to be resolved soon and the Government plans to offload stake in the company, along with PFC and SAIL, in this quarter itself.

“We are in the process of resolving the independent director issue in ONGC. The follow-on public offer (FPO) of the company is likely to come in the quarter ending June,” a Finance Ministry official told PTI.

ONGC does not meet market regulator Sebi’s listing norms of having equal number of functional and independent directors and the government had planned to withdraw both its nominees from the board to meet the requirement and push the FPO.

But the move would have led to ONGC losing its coveted Navaratna status, which gives the company board autonomy to approve investments of any size for projects, and enables it to invest up to Rs 1,000 crore in a joint venture.

The government plans to sell 5% stake or 427.77 million equity shares through the FPO to raise up to Rs 12,000 crore. It was to hit the market in March, but was deferred.

The official further said that PFC is likely to be the first public issue of the current fiscal, followed by SAIL.

Meanwhile, Disinvestment Secretary Sumit Bose said, “We hope to come out with the public issue of PFC, SAIL and ONGC in the first quarter of the current fiscal.”

State-run Power Finance Corporation’s Rs 6,000-crore FPO is likely to hit the market in the second week of May and the company has already filed the draft red herring prospectus (DRHP) with Sebi.

The government holds 89.78 per cent stake in the firm. It had divested 10 per cent through initial public offer (IPO) in 2007. The company will infuse 15 per cent fresh equity, while the government will dilute its 5 per cent stake.

Besides, the much-awaited Rs 8,000-crore FPO of Steel Authority of India (SAIL) is set to hit the capital market by the end of next month.

The FPO of SAIL, in which the Government holds a little over 85%, has failed to meet repeated deadlines since December due to unfavourable market conditions and problems with merchant bankers.

In SAIL, in the first phase, besides raising Rs 4,000 crore by divesting 5 per cent stake, the steel giant would raise fresh equity of the same proportion. In the second phase, it will sell another 10% through FPO.

The government has set a target of Rs 40,000 crore through disinvestment in state-owned firms this fiscal, up from over Rs 22,000 crore mopped up in 2010-11.

Infosys to complete restructuring in 3-4 months: Sources

Infosys is likely to have finalised two European firms for acquisition, reports CNBC-TV18 quoting sources. It is learnt that the IT major will be pumping in USD 280-300 for the acquisition which is slated to be completed before July.

Sources add that that Infosys has appointed three member panel with Director-HR of the company Mohandas Pai at the helm. The panel will chart out restructuring blueprint. However, Infosys may go for restructuring only after the succession plans are announced.

According to sources, Infosys is looking to restructure business into seven key verticals, wherein each vertical will be divided into different horizontals. Sources also say that three to four key vertical heads likely to be shuffled and upto 1000 senior-mid management employees may be restructured. Infosys is eyeing to complete restructuring in three-four months time.

However, Infosys has refused to comment calling it speculation.

- Money control

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