New Delhi, Aug. 30: The Rs 12,000-crore follow-on public offer of ONGC is likely to hit the markets by the end of next month. The PSU will file the red hearing prospectus on September 5.

“The ONGC board approved the red herring prospectus on Monday, which will be filed according to the instructions of the government,” ONGC chairman and managing director A.K. Hazarika told reporters today.

The public offer, through which the government is selling 5 per cent in ONGC, may open on September 20 or 27.

“Keeping the strong fundamentals of ONGC in view, we are confident that the response from investors will be overwhelming,” he said.

The FPO was originally planned in 2010-11 but was deferred to April 5 as the company did not have an adequate number of independent directors on its board to meet the market regulator’s listing norms. It was then rescheduled for July 5 but was again deferred because of adverse market conditions.

Following the FPO, the government’s stake in ONGC will come down to 69.14 per cent from 74.14 per cent.

Bhel issue

The Cabinet Committee on Economic Affairs (CCEA), which met today, has approved the sale of 5 per cent of government stake in power equipment major Bhel. The offer, which could mop up over Rs 4,326 crore (nearly $1 billion), would cut the government's holding to 62.72 per cent in Bhel.