Poor response for ONGC share auction

The ONGC share auction was disappointing with the company getting bids for 19.92 crore shares on the NSE and 9.3 crore shares on the BSE.

This is way below the total offer of 42 crore shares which were on offer with a floor price of Rs 290 per share and a face value of Rs 5 per share.

The shares of ONGC closed lower at Rs 288.20, down 1.71% on the National Stock exchange (NSE). The disappointing response to the ONGC auction may prompt the government to reconsider its decision to sell a stake in other companies during the current financial year.

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