Tuesday, March 6, 2012

ONGC 5% stake sale

The GoI has done something that can be considered highly immoral and/or unethical. This link shows how LIC was kinda the sole institutional bidder for ONGC's shares, the sale of which was conducted haphazardly for the government's 'fiscal picture' benefit. LIC bought 377.1 shares of the 420.4 million shares which were eventually sold last Friday, the 2nd of March.
So, LIC, which takes money from people as, primarily, a life insurer, bought shares of a company - 5% worth - that nobody else really wanted. ONGC is a kind of dead beat company. Point: Irrationality has consequences even if they take decades to pan out.

No comments:

Post a Comment