This document summarizes the initial public offering of Oil and Natural Gas Corporation (ONGC), India's largest oil and gas exploration and production company. ONGC was founded in 1956 and is headquartered in New Delhi. The IPO involved the sale of 142.6 million shares at a price between Rs. 680-750 per share to raise between Rs. 97-107 billion. Post-IPO, the Government of India's stake in ONGC would be 74.1%.

1. ONGC IPOOIL & NATURAL GAS CORPORATION LTD.

2. ONGC is asia’s largest & most active company involved in exploration & production of oil.ONGC was founded on 14th august 1956, & the head quarters is in new delhi.Chairmen & M.D. – A.K.Hazarika.INTRODUCTION

3. ONGC ranks 3rd Oil & Gas Exploration & Production (E&P) Company in the world.ONGC no 1 among Indian Blue Chips.Occupies 155th rank in “Forbes Global 2000” PROFILE

4. Ranked at top of the Best companies to work for in Core Sector by Business Today in Feb 2010 edition.Golden Peacock Global Award 2007 for Excellence in Corporate Governance 2009”, conferred by World Council of Corporate Governance, London.Rated ‘Very Good’ in MOU(Memorandum of understanding) Performance Rating for 2008-09 by the Department of Public Enterprises, Ministry of Heavy Industries in Public Enterprises, GOI. ACHIVEMENTS

5. Contributes over 79 per cent of Indian’s oil and gas production.Refining capacity of about 12 MMTPA.ONGC owns and operates more than 22000 kilometers of pipelines in India, including nearly 4500 kilometers of sub-sea pipelines. No other company in India, operates even 50 per cent of this route length.CONTINUED…

6. Operating Income: US$ 6.75billion in 2010Net Income: US$ 4.3billion in 2010ONGC posted a net profit of Rs. 167.68 billion despite volatile oil markets and crude prices. Net worth Rs. 864 billion Practically Zero Debt CorporateContributed over Rs. 281 billion to the exchequer FINANCIAL FACTS

7. Type : Offer for sale by the book-building route.Size : Rs 97 bn to 107 bn.Price : Rs 680 to Rs 750 per share.Face value : Rs 10 per share.Shares on offer : 142.6 m shares.Issue Opens : March 5, 2004.Issue Closes : March 13, 2004.Min. subscription : 10 shares .ISSUE SUMMARY

8. Lead Managers : JM Morgan Stanley, DSP Merrill Lynch, Kotak Mahindra Capital Company.Listing : BSE, NSE, Delhi Stock Exchange.Promoters : Government of India .Promoters post issue holding : 74.1%CONTINUED…

9. REVENUE BREAK UP

10. Reasons to applyNear monopoly and high entry barriers : ONGC currently accounts for 84% of the domestic natural gas and crude supply, which can be largely attributed to its vast geographical presence across the country.Benefits of downward integration: ONGC has been granted license to set up 1,100 retail outlets for the purpose of marketing petroleum products and motor spirit. Further, it has acquired management control of MRPL, which marks its entry into the refinery business.

11. CONTINED…OVL's encouraging business model: ONGC through its wholly owned subsidiary, ONGC Videsh (OVL), has picked up stake in oil equities abroad (eight countries) and has a target to expand its oil equity base to 20 MT by 2010. Abolishment of subsidies: Over the past few years, the government has been reducing its share in the LPG and SKO (superior kerosene oil) subsidy bill and it is likely that in the next 2 to 3 years, the GOI's share will become zero.

12. Reasons not to applyGovernment control on allocation.Government deregulation.High capital expenditure plans.OVL's venture into politically unstable areas.High contingent liabilities

13. Shareholding% PRE-OFFFER POST OFFER GOI 84.11 74.11IOC 9.61 9.61 GAIL 2.4 2.4 Public 3.88 13.88

14. MAJOR PROJECTSONGC bags two major projects in SudanThe international arm of ONGC Videsh has secured two major projects in the African nation of Sudan for laying of a 714 km pipeline from Khartoum to Port Sudan for carrying crude oil products and revamping of a refinery in the Port of Sudan at a cost of $ 750 million.

15. REFERENCESwww.google.comwww.indianipoblog.comwww.rediff.comwww.sify.com

16. GROUP MEMBERSMOHAMMAD FARHANAKMAL HAYAT KHANMATLOOB HASANMOHSIN KHANABDUL KHALIQUE KHAN

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