The ONGC auction process has been so opaque and confusing that one can safely assume some jugaad by the Finmin /Disinvestment Min, to ensure that it attained the Fully Subscribed status.
My points to ponder
1. Considering that the primary subscribers to the issue were in any case PSU entitys it clearly shows that the govt cant even manage to get its act together.
2. All said and done if the ONGC share price does not climb and hold above the auction price at least for the next few days this whole exercise will be a futile and shallow venture because it will dent the sentiment even further.
3. Such stuff reminds us as to why the retail participation in the markets is negligible and why politicians consider the markets as gambling dens … They are primarily responsible for making the markets into gambling dens, thanks to poor accountability and the repeated instances of the regulator bending to political pressure to accommodate cronyism.
4. What will LIC return its investors this fiscal year ? and is it advisable to review the decision of buying an LIC policy in the long run considering the fate of UTI64 which was govts favourite bailout tool used by the congress etc.
5. Do we expect a total stop to more PSU IPOs and FPOs by the government? Considering the fact that the last batch of govt paper issued is still sitting at a 35 to 60% loss or discount .. Which retail investor will have an appetite to subscribe to let alone hold over the longer term any govt paper?