Natural Gas Corporation (ONGC) increased by more than five percent in the early trade on BSE today, accompanied by the government’s agreement to the share divide and issue of bonus shares of the company.
On Wednesday, the government agreed to a share split in ONGC and on the issue of bonus shares as an introduction to the company’s follow-on public offer in March next year.
Instigated by this step, the share of the state-run oil and gas major has had a good initial start and increased by 5.07 percent to an initial high of Rs 1,353.85 on the BSE.
Likewise, the scrip saw a profit of 5.31 percent to trade at Rs 1,354.65 on the NSE.
Important profits in the heavy-weight ONGC was had a vital role in pushing up the 30-share benchmark Sensex by 217 points up to 20,067 points.
The sources say that the Cabinet Committee on Economic Affairs (CCEA) has agreed to split a share of ONGC with a face value of Rs 10 into two shares at Rs 5 each. Moreover, everyone believes it to have agreed to a 1:1 bonus issue (1 share per held share).