The government of India has decided to scrap the sale of Pawan Hans, and the move has hurt the stock of oil explorer ONGC, a joint venture partner in the helicopter service provider.
What Happened? The Indian government on Monday called off the strategic disinvestment of helicopter service provider Pawan Hans due to the disqualification of the winning bidder, Star9 Mobility, over pending legal cases.
Last year, the government approved the sale of Pawan Hans to Star9 Mobility, a consortium consisting of Big Charter, Maharaja Aviation, and Almas Global Opportunity Fund SPC, for ₹211.14 crore.
However, the sale was halted in May 2022 when it was discovered that the Kolkata bench of the National Company Law Tribunal had issued an order against Almas Global Opportunity Fund SPC, a member of the consortium, in a separate case related to a resolution plan under the Insolvency and Bankruptcy Code. Consequently, the government did not issue the letter of intent for the sale to the winning bidder.
Pawan Hans is a joint venture between the government and ONGC, which hold stakes of 51% and 49%, respectively.
Get all the latest Share Market trends and news to set you up for the week ahead.
Price Action: ONGC shares tanked 1.50% to trade at ₹160.45 in early morning trade on Tuesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.