New Delhi, Sept. 5 (PTI): Oil and Natural Gas Corporation’s (ONGC) much-delayed Rs 11,000-crore share sale is likely to be launched on September 20, with the state-run explorer filing papers for the public issue with market regulator Sebi today.

“ONGC filed a 610-page red herring prospectus (RHP) with the Securities and Exchange Board of India today,” a source said.

The follow-on public offer is likely to open on September 20 and close on September 23.

The government plans to sell 5 per cent, or 427.77 million shares, through the FPO. At today’s closing price of Rs 256.85 per share on the Bombay Stock Exchange, the share sale will fetch about Rs 11,000 crore. After the FPO, the government’s stake in ONGC will come down to 69.14 per cent from 74.14 per cent.

A group of ministers, headed by finance minister Pranab Mukherjee, is likely to decide on the price band on September 16 and the issue price will be fixed on September 25.

According to the source, roadshows will begin today in the US. Promotional roadshows will also be held in Singapore, Hongkong and London. The same will be held in Mumbai on September 19 and in the national capital the next day.

Sources said the RHP incorporated the financials of the company till the April-June quarter.

The FPO was originally planned in 2010-11, but the launch was deferred to April 5 as the company did not have adequate number of independent directors on its board to meet Sebi’s listing norms.

It was then rescheduled for July 5 but was again postponed because of adverse market conditions.

The Centre had appointed Citigroup, Nomura Holdings, Bank of America Corp, HSBC Holdings, JM Financial Services and Morgan Stanley to manage the share sale.

The government's ad-hoc subsidy sharing mechanism has cast a shadow over ONGC's share sale during recent months.