| 07 December 2010
|Board to consider Bonus Issue, Stock Split & Special Dividend
|Oil & Natural Gas Corporation Ltd has informed BSE that the Government of India has conveyed the decision for disinvestment of 5% paid up equity capital of ONGC out of Government shareholding. The Company have also been advised to take necessary action for completion of the following activities at the earliest:1. Issue of Bonus Shares in the ratio of 1:1
2. Split one share into two, and
3. To consider payment of an appropriate amount as special dividend before the proposed disinvestment.
A notice has already been given to the Stock Exchanges with regard to the Board Meeting scheduled to be held on December 16, 2010, inter – alia, to consider payment of Interim Dividend for the Financial Year 2010-11. Further the Company notify that the Board of Directors in their meeting scheduled to be held on December 16, 2010, will also inter alia consider the above agenda items.
| 16 December 2010
|Board approves Special Interim Dividend, Split & Bonus Shares
|Oil & Natural Gas Corporation Ltd has informed BSE that the Board of Directors of the Company at its meeting held on December 16, 2010, inter alia, have:1. Approved a Special Interim dividend of Rs. 32 (Rupees Thirty two) per share of Rs. 10/- each fully paid up for the Financial Year 2010-11.
2. Recommended for approval of the shareholders for sub division of each Equity share of Rs. 10/- each fully paid up into two equity shares of Rs. 5/- each fully paid up.
3. Recommended for approval of the shareholders for issuance of Bonus shares in the proportion of one new equity bonus share of Rs. 5/- each for every one existing equity share of Rs. 5/- each fully paid up by capitalisation of reserves.
4. Approved for seeking the consent of the shareholders to the proposal at (2) and (3) above through Postal Ballot in terms of Section 192A of the Companies Act, 1956 and the rules framed thereunder.
Government is set to disinvest 5% from the 74.14 % of the Equity it holds in ONGC
…but see what Government Institution and Big Daddy Investor LIC is upto…obviously and surely under some direction…..As on September 30,2010 it held 3.10% of the equity in ONGC,holding 66206426 shares… it now informs BSE that it held 106939073 Equity Shares of ONGC as at November 19,2010….so it purchased 40732647 shares in October and November 2010 upto November 19,2010….it now holds exactly 5% of ONGC
So what’s my Point ?…two really !
- Even if the Government is to disinvest 5% of the equity,sometime in Feb 2011 as a Follow up Public Offer (FPO),it would be just a technical exercise……as it has already been shoring up on ONGC through LIC….which has picked up an incremental 1.9 % stake already…so what’s the big deal about the FPO….the shareholding pattern will merely reduce Promoter Government’s 74.14 % to 69.14%…but Government Institution LIC has already moved up shareholding by 1.9% from 3.1% to 5% and will surely participate in the FPO too….Government wants to show before March 2011 that it has received disinvestment proceeds of US $ 3 Billion (Rs 13000 crs +) for @107 Million shares of ONGC….in a sense LIC is giving it !…in a sense from one pan of the Government to another !
- Markets have been subdued of late…but they were buoyant in September and October 2010….even then what made LIC pump in such a huge amount of @ Rs 5000 crs to acquire another 40.7 million shares or another 1.9 % of ONGC ?…were they asked to do so by the Government as implied above or were they in the know and were hoping to make a huge inside kill on announcement of the 1:1 Bonus,Split and the Special Dividend ?….a subdued market is not allowing them too,even though ONGC has pulled back well to Rs 1329 from the December Low of Rs 1192
Interesting….LIC seems to be in the thick of many things these days !…so will LIC be answerable to IRDA or SEBI on this !…the Insurance Regulator or the Investment Regulator…..Oh ! how does this matter anyway !…they’re all Government !