In the biggest ever public issue in India, the government would mop up Rs 10,500 crore (Rs 105 billion) from the sale of 14.2 crore (142 million) shares in Oil and Natural Gas Corporation, overshooting its divestment target for this fiscal by Rs 900 crore (Rs 9 billion).

Total mobilisation from the six public issues, the last one being ONGC, the government would mop up over Rs 14,000 crore (Rs 140 billion), and this, coupled with earlier proceeds, would lead the divestment realisation of Rs 15,400 crore (Rs 154 billion) during 2003-04.

In ONGC, the institutional bidders would receive allotment at Rs 750 per share while retail bidders would get a discounted price of Rs 712.5 per share. Over 760,000 retail bids were received for the issue that closed last week.

The final sale price for ONGC offer was announced by Divestment Minister Arun Shourie after getting approval from the petroleum and finance ministries.

Just before ONGC, the public offer of GAIL emerged as the biggest issue in six years and the sale of 10 per cent equity in it at Rs 195 a share helped the government mop up Rs 1,620 crore (Rs 16.20 billion).

Besides, the government mopped up Rs 1,200 crore (Rs 12 billion) from the public offer for residual equity in IPCL, Rs 352 crore (Rs 3.52 billion) in IBP, Rs 221 crore (Rs 2.21 billion) for DCIL issue and Rs 190 crore (Rs 1.90 billion) from the sale of equity in CMC.

About 350 major investors had bid for the issue for 10 per cent equity in the biggest company of India.

The government had earmarked 10 per cent equity each for ONGC employees and the existing stake holders of the company and its subsidiary MRPL.

As a result of reserving 20 per cent of the 14.2 crore share issue, the government could make a public offer for only 11.4 crore (114 million) shares.

The government had even approached the Securities and Exchange Board of India to allow the merchant bankers for the offer to issue participatory notes, an instrument for attracting foreign investment from funds not registered in India.