Independent directors of ONGC are believed to have raised some questions on the proposed move to list ONGC Videsh Ltd (OVL), the company’s overseas investment arm.
Sources close to the development said that besides the timing of the move, the independent directors also wanted to know the intent behind such a decision.
ONGC is debt-free and if funding is the only reason behind the proposal to list OVL, then other mechanisms could also be explored, the independent directors had observed at the recent board meeting of the company.
“The issue has not been put on back-burner, but the company is going to do a detailed study of the questions raised by the independent directors before taking it any further,” an official said.
To fund overseas acquisitions, it was proposed to list OVL to raise approximately Rs 5,000 crore. Another issue that will need to be considered is whether the matter will require Department of Disinvestment approval.
Those tracking the company say that before taking any decision, the sentiments of employees, too, need to be addressed. OVL has always been treated as part of ONGC, drawing internal resources from ONGC.
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