ONGC Seeks Rocky Auction as Goverment Sells Stake

The Government of India has sold a five per cent stake in state-run Oil and Natural Gas Corporation, raising about $2.45bn, in what appears to have been a troubled auction process.

The offering appeared to be significantly under-subscribed, as Indian markets closed on Thursday.

Late in the evening, the nation's two main stock exchanges released a joint statement confirming the sale had been 98 per cent subscribed.

Speaking at a late-night press conference, Siddharth Pradhan, the Indian government’s additional disinvestment secretary, said that technical glitches had disrupted the auction.

Pradhan denied comments by market observers that the government had asked state-owned financial institutions to step in to rescue the auction process.