ONGC rallies after nod for stock split, bonus shares

ONGC rallies after nod for stock split, bonus shares

New Delhi: Shares in Indian explorer Oil and Natural Gas Corp jumped as much as 5.1% on Thursday, after the state-run firm received the government’s approval for a stock split and bonus issue.

Petroleum minister Murli Deora told Reuters the Cabinet had approved issue of 1 free share to ONGC’s stock holders for each share held, but did not say what the ratio was for stock split.

ONGC had proposed to the government to split each share into two ahead of a planned share sale in the company, chairman R S Sharma said last month.

At 11.10 am, shares in ONGC, India’s second-most valuable firm at more than $62 billion, were trading 2.8% up at Rs1,324, having risen as high as 1,353.85 earlier.

The shares are up about 12% this year, compared with a 14% rise in the main index.

ONGC expects its follow-on share sale to hit the markets in March, Sharma said on Wednesday. The government has approved a 5% stake sale in ONGC that is expected to raise more than $3 billion.