Mumbai: State-run firm Oil and Natural Gas Corporation Ltd. (ONGC) on Thursday saw an erosion of nearly Rs2,700 crore in its market valuation with its shares tumbling 2%, amid concerns raised by investment banker Goldman Sachs over corporate governance issues at the company.

On the Bombay Stock Exchange, ONGC scrip plunged over 1.90% to settle at Rs651.85. After opening firm at Rs670 in the morning trade, the scrip witnessed a drop of over 4% at Rs637.15 in the intra-day.

A Goldman Sachs report has stated that it has reiterated a ‘sell´ on ONGC as it is known that the promoters (the Government of India) have taken out $20 billion from the oil company without consulting its shareholders.

However, denying the allegations, ONGC CMD R S Sharma told business news channel CNBC TV 18 that the management had assigned highest priority to corporate governance issues.

He added the government decision is not conflicting with corporate governance issues.

The total market capitalization of ONGC on Thursday stood at Rs1,39,422.41 crore, whereas the same was at Rs1,42,117.39 crore on Wednesday.

The second most valued public sector firm has a weightage of 4.75% on the 30-share BSE index - Sensex.