ONGC FPO IPO: Review Analysis & Details of Oil and Natural Gas Corporation FPO IPO

It's the season of IPO's and FPO's - so the Government of India has also joined the party with an FPO of Oil and Natural Gas Corporation.
The much deferred, actually twice deferred FPO or Follow-on Public Offer of Oil and Natural Gas Corporation ONGC is now expected to come out on September 20, 2011 as per the latest news and reports. It is reported that the road show for the much awaited ONGC FPO will start on 6th September 2011 in New York and the opening of the ONGC FPO will be on 20 September 2011.
The FPO or follow-on public offer of the another government owned healthy company called ONGC or Oil and Natural Gas Corporation is expected soon. Investors who are interested in applying for this FPO or IPO should note that this is NOT an IPO, rather it is an FPO since the ONGC Shares are already listed on the stock exchanges.
In this article, we will look at the Review, Analysis and Details of the ONGC FPO and try to do the Review and analysis of Oil and Natural Gas Corporation FPO.

ONGC Oil and Natural Gas Corporation FPO: Review Analysis & Details

Some basic details first about the ONGC FPO, which are available as of now:

- The issue size of the ONGC IPO is Rs 12,192 crores INR
- There will be 5% shares sold through this ONFC FPO which will constitute around 428 million ONGC shares
- The prospects for the ONGC FPO is expected to be filed on September 5, 2011

What is the issue size of the ONGC FPO / ONGC IPO?
Issue size for ONGC FPO is Rs. 12,192 Crore Rs. Image sourced from ONGC website

What is the price band of ONGC FPO / ONGC IPO?
Although exact details are not known, but it is expected that the price band of ONGC FPO will be around Rs. 285 per share. Yesterday's closing price of ONGC was around 263 Rs (30th August 2011). It is currently not known whether retail investors will get any discount on the price, since this is an FPO. But general understanding is that usually all government company IPO's have a typical 5% discount, so it should be available. Things will become clear once the exact details are available.

How many shares will be sold in the ONGC FPO / ONGC IPO?
A total of 427.77 million shares will be sold through the FPO.

What is the trading symbol & exchange for the ONGC IPO
The symbol will remain same as this is an FPO from ONGC.

What are the IPO dates for ONGC IPO
The ONGC IPO FPO open dates are expected to be from 20 September 2011 to around 3-5 days period.

Any ratings given to ONGC IPO?
No information about that. However, this being one of the 3 largest companies by market-cap size and being a government owned company in the oil and gas sector, it is learnt to have strong fundamentals. It is usually always on high ratings and learnt to have strong fundamentals.

What are the analysts recommendations and business results for ONGC IPO?
Being a government owned company with one of the largest market cap in the oil and gas sector, it is recommended that investors can stay invested in this company shares for long term.
This FPO from ONGC is much awaited and has been deferred twice due to market conditions and various other reasons. Stock experts believe that this ONGC FPO will get good response from investors.
While there are good prospects for this company with recently resolved issues of Rajasthan Oil fields, there are still some open issues about subsidy sharing mechanism which need to be addressed. However, investors with long term view should not worry about these things.
Government stake in ONGC post this FPO will come down to around 69% from the current 74% approx.