India May List ONGC's Overseas Arm: Report

The Indian government has asked ONGC to consider listing its overseas arm, ONGC Videsh (OVL), on Indian stock exchanges, according to a report by Press Trust of India published August 21. At present ONGC owns 100% of OVL, while the government owns a little over 67% of ONGC.

In a letter written to ONGC management, the Department of Investment and Public Asset Management (DIPAM) said that listing of OVL would help unlock value by improving its corporate governance and efficiency, Press Trust of India reported. OVL has so far invested about $28bn in 41 projects across 20 countries.

DIPAM, however, did not say how much stake in OVL should ONGC offload. Indian market regulator calls for a minimum 25% public float for a listed company. Officials told Press trust of India that proceeds of the listing of OVL would accrue to its parent ONGC but the government would seek a special dividend to reap that.

For the 12-month period that ended June 30, 2018, OVL’s output was 14.16mn tons of oil equivalent, up from 12.8mn tons of oil equivalent in the previous year, Press Trust of India reported. It reported a net profit of rupees 9.81bn ($140mn) during the 12-month period, up from rupees 7.01bn in the previous year.