Basis of Allotment

Offer for Sale by the President of IndiaActing through and represented by the Director

Offer for Sale by the President of India

Acting through and represented by the Director, Ministry of Petroleum and Natural Gas, Government of India (the "Selling Shareholder") of equity shares in

Oil and Natural Gas Corporation Limited

Registered Office: Jeavan Bharati Tower 11, 124, Indira Chowk, New Delhi - 110 001.
Tel.: +91-11-2330 1000, Fax: +91-1l-2331 6413. Website: www.ongcindia.com, e-mail: ongcoffer@ongc.net

Offer for Sale by the Selling Shareholder of up to 142,593,300 equity shares of Rs. 10 each of Oil and Natural Gas Corporation Limited (the "Company" or "ONGC") at a price of Rs. 750/- for cash aggregating to approximately Rs. 106,944.975 million (hereinafter referred to as the "Offer"). The Offer constituted up to 10% of the total paid-up capital of the Company. The Equity Shares offered for sale are already listed on The National Stock Exchange of India Limited (Designated Stock Exchange), The Stock Exchange, Mumbai and The Delhi Stock Exchange Association Ltd. The Equity Shares are tradeable on these exchanges. The Selling Shareholder has decided to transfer the Equity Shares to (a) Retail Individual Bidders and (b) Individual Bidders bidding under the reservation for Permanent Employees/Whole-time Directors of the Company, shareholders of the Company and shareholders of MRPL who apply or bid for Equity Shares of not more than Rs. 50,000/- at Rs. 712.50 per Equity Share which is at a 5% discount compared to the Offer Price to QlBs and Non Institutional Bidders. The Selling Shareholder is solely responsible for this decision and the consequences thereof.

As advised by the Secuities and Exchange Board of India, the SEBI guidelines for public issues/offers do not apply to a listed company facilitating one of the shareholders to dispose of its shareholding through an offer for sale such as this Offer. However, the Selling Shareholder has voluntarily decided to adopt the SEBI Guidelines, particularly the guidelines for 100 percent Book Building Process, save for certain deviations. Pursuant to the decision of the Selling Shareholder, up to 10 percent of the offer was reserved for Permanent Employees / Whole-time Directors of ONGC, up to 10 percent of the Offer was reserved for shareholders of ONGC (excluding the President of India, IOC and GAIL) and shareholders of MRPL (excluding ONGC and HPCL). Thereafter, the Net Offer ("Net Offer") to the Public was up to 114,074,640 Equity Shares, out of which a maximum of 50 percent of the Net Offer was available for allocation on a discretionary basis to Qualified Institutional Buyers. Further, not less than 25 percent of the Net Offer was available for on a proportionate basis to Non Institutional Bidders and not less than 25 percent of the Net Offer was available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid bids being received at or above the Offer Price. For further details, see "Terms of Offer" of the Final Sale Document.

The subscription received under various categories in the offer is as stated below:  

Category  Subscription (times)
Qualified Institutional Buyers   12.9*
Non Institutional Bidders   1.58#
Retail Individual Bidders   1.00#
Permanent Employees/ Wholetime Director   1.00#
Shareholders of ONGC and MRPL   1.48#

*As per electronic book data of NSE & BSE

#The level of subscription is as per the approved basis of allocation and computed after spill over of shares from undersubscribed categories to other categories as per the terms of the Final Sale Document.

The level of subscription should not be taken to be indicative of either the market price of the Equity Share or the business prospects of the Company.

A) Allocation to Non lnstituuonal Bidders: The Basis of Allocation to the Non Institutional Bidders who have bid for at or above the Issue Price of Rs. 750/- per Equity Shares, was finalised in consultation with the National Stock Exchange of India Limited, on a proportionate basis after rounding off to the nearest one share. The total number of share allocated in this category is 33,722,866. The number of valid application received in the category was 9284. A sample of category-wise details of the Basis of Allocation is as under:

Category No. of applns. % of total applns. No. of Shares applied No. of Shares allocated Ratio Total shares allocated
80   135   1.5%   10800   51   Firm 6885
90   224   2.4%   20160   57   Firm  12768
100   1747   18.8%   174700   63   Firm  110061
110   54   0.6%   5940   70   Firm  3780
120   100   1.1%   12000   76   Firm  7600
130   156   1.7%   20280   82   Firm  12792
140   118   1.3%   16520   89   Firm  10502
150   243   2.6%   36450   95   Firm  23085
160   52   0.6%   8320   101   Firm  5252
170   20   0.2%   3400   107   Firm  2140
180   32   0.3%   5760   114   Firm  3648
190   36   0.4%   6840   120   Firm  4320
200   769   8.3%   153800   126   Firm  96894
210   31   0.3%   6510   133   Firm  4123
220   18   0.2%   3960   139   Firm  2502

B)Allocation to Retail Individual Bidders: The Basis of Allocation to the Retail Bidders who have bid for at or above the Issue Price of Rs. 712.50 per Equity Shares, was finalised in consultation with the National Stock Exchange of India Limited. The total number of share allocated in this category is 23,101,290. The number of valid application received in the category was 567823 and full and firm allotment has been given to the applicants. The category-wise details of the Basis of Allocation is as under:

Category No. of applns. % of total applns. No. of Shares applied No. of Shares allocated Ratio Total shares allocated
10   114055 20% 1140550 10 Firm  1140550
20 100009 18% 2000180 20 Firm  2000180
30 49662 9% 1489860 30 Firm  1489860
40 30031 5% 1201240 40 Firm  1201240
50 48065 8% 2403250 50 Firm  2403250
60 95517 17% 5731020 60 Firm  5731020
70 130528 23% 9136960 70 Firm  9136960

C)Employees: The Basis of Allocation to the Permanent Employees / Wholetime Directors who have bid upto Rs. 50,000/- were allocated shares at Rs. 712.50 per Equity Shares and in case of bids in excess of Rs. 50,000/- shares were allocated at Rs. 750/- per Equity Shares, finalised in consultation with the National Stock Exchange of India Limited.The total number of share allocated in this category is 32,82,390. The number of valid application received in the category was 19963 and full and firm allotment has been given to the applicants. A sample of category-wise details of the Basis of Allocation is as under :

Category No. of applns. % of total applns. No. of Shares applied No. of Shares allocated Ratio Total shares allocated
10   244   1.2%   2440   10   Firm   2440
20   342   1.7%   6840   20   Firm   6840
30   237   1.2%   7110   30   Firm   7110
40   177   0.9%   7080   40   Firm   7080
50   552   2.7%   27600   50   Firm   27600
60   667   3.3%   40020   60   Firm   40020
70   7989   39.4%   559230   70   Firm   559230
80   8   0.0%   640   80   Firm   640
90   15   0.1%   1350   90   Firm   1350
100   752   3.7%   75200   100   Firm   75200
110   26   0.1%   2860   110   Firm   2860
120   65   0.3%   7800   120   Firm   7800
130   200   1.0%   26000   130   Firm   26000
140   157   0.8%   21980   140   Firm   21980
150   764   3.8%   114600   150   Firm   114600

D)Shareholders of ONGC and MRPL: The Basis of Allocation to the Shareholders of ONGC & MRPL
who have bid upto Rs. 50,000/- were allocated shares at Rs. 712.50 per Equity Shares and in case of bids in excess of Rs. 50,000/- shares were allocated at Rs. 750/- per Equity Shares, finalised in consultation with the National Stock Exchange of India Limited. The total number of share allocated in this category is 14,258,352. The number of valid application received in the category was 145267. A sample of category wise details of the Basis of Allocation is as under :

Category No. of applns. % of total applns. No. of Shares applied No. of Shares allocated Ratio Total shares allocated
10   19842   13.66%   198420   7   Firm   138894
20   24141   16.62%   482820   13   Firm   313833
30   12840   8.84%   85200   20   Firm   256800
40   7839   5.40%   313560   27   Firm   211653
50   13960   9.61%   698000   34   Firm   474640
60   25333   17.44%   1519980   41   Firm   1038653
70   38818   26.72%   2717260   47   Firm   1824446
80   35   0.02%   2800   54   Firm   1890
90   51   0.04%   4590   61   Firm   3111
100   618   0.43%   61800   68   Firm   42024
110   12   0.01%   1320   74   Firm   888
120   39   0.03%   4680   81   Firm   3159
130   66   0.05%   8580   88   Firm   5808
140   35   0.02%   4900   94   Firm   3290
150   81   0.06%   12150   101   Firm   8181

E)Qualified Institutional Buyers: Numbers of Shares allocated to this category was 67600960.

Refund orders have been dispatched except for cases which are being re-verified. In case of non-receipt of refund, please contact the Registrar to the Offer as per details mentioned below, As per the terms of the offer, the refunds will be posted to the applicants at addresses as per the Beneficiary Account record with the Depository.

Shares in respect of which correct and complete details were available have been uploaded in the depository systems. Investor are advised to ensure that their beneficiary accounts are activated with their Depository Participant.

The status of the allotment of shares is being uploaded on the website: hftp://www.mcsind.com, investors can access the Webeite for knowing the status of their application(s).

All Correspondences with reference to this Offer should be addressed to the Registrars to the Issue quoting full name of the First/Sole applicant, Serial number of the bid-cum-application form, DP ID, Beneficiary ID, number of shares bid for, name of the Member of the Syndicate and Place where bid was submitted and payment details at the following address:

MCS Limited - (Unit ONGC Offer) 'Sri Padmavathi Bhavan', Plot No.93, Road No. 16, M.I.D.C Area, Andheri (East), Mumbai - 400 093. Tel.: +91-22-2820 1785, Fax: +91-22-2820 1783 / 2826 0962.
E-mail: ongcoffer@mscind.com, Contact Person: Mr.Shashi Kadam.

Helpline: 022-28313754 / 28313734/28313729/28312984. Kolkatta: Tel.No.: 033-24541892 / 24541893
Fax No.: 033-24541961. Ahmedabad: Tel No.: 079-26581296 / 26582878, Fax No.: 079-26584027

Place       : New Delhi
Date        : April 13, 2004
For The Selling Shareholder
N. K. Singh
Director
Ministry of Petroleum and Natural Gas Government of India

B00K RUNNING LEAD MANAGERS, JM Morgan Stanley Pvt. Ltd
.: 141, Maker Chambers III, Nariman Point,, Mumbai - 400 021, TeL-No.: +91-22-5030 3030, Fax no.: +91-22-5630 1694, E-mail: ongc.offer@jmmorganstanley.com
Helpline: Tel. No. 022 - 56303185. Fax : 022 - 22028224 E-mail: tn.kumar@morganstanley.com,
Contact Person:T. N. Kumar.

DSP Merrill Lynch Ltd.:
Mafatlal Centre, 10th Floor, Nariman Point, Mumbai - 400 021
Tel. No.: +91 - 22 - 5632 8000, Fax: +91 - 22 - 2204 8518, Email: ongc_offer@ml.com
Helplins: 022 - 22679849, E-mail: theresa_pimenta@ml.com, Contact Person: Theresa Pimenta

Kotak Mahindra Capital Company Ltd.
3rd floor, Bakhtawar, 229, Nariman Point, Mumbal - 400 021
Tel. No.: +91 - 22 - 5634 1100, Fax: +91 - 22 - 2284 0492, Email: ongc.offer@kotak.com
Helpline: 022 - 56529317118, E-mail: ongcipo.response@kotak.com, Contact Person: Nehe Pushkala

Syndicate Member
Kotak Securities Limited
1st Floor, Bakhtawar, 229, Nariman Point, M umbai - 400 021
Tel. No.: +91 -22-5634 1100, Fax no.: +91-22-5630 3927

Company Secretary and Compliance Officer
Mr.H. C.Shah
Oil and Natural Gas Corporation Limited
Jeevan Bharati, Tower 11, 124, Indira Chowk, New Delhi - 110 001
Tel. No.: +91-11-23301277, Fax no.: +91-11-23311326, E-mail: complianceofficer@ongc.net
Delhi Helpline: 011 - 23311847/48,23301849/50/51, Fax no.: 011-23311326

Other Helpline for all queries related to Allocation / Refund of Shares
M/s Karvy
HYDERABAD
Tel. No: 040-23312454 / 23320251, Fax: 23311968, E-mail: mailmanager@karvy.com

AHMEDABAD
Tel. No.: 079-26420422 / 26400527 / 26400528, Fax: 26566551, E-mail: ahmedabad@karvy.com

GUWAHATI
Tel. No.: 0361-2608016 / 2608102 / 2608122, E-mail: guwahati@karvy.com

PATNA
Tel. No.: 0612-2321354 / 2321355 2321356 / 2321357, E-mail: patna@karvy.com

SURAT
Tel. No.: 0261-8357356 / 8351976 8369928, Fax: 8368693, E-mail: surat@karvy.com

VADODARA
Tel. No.: 0265-2225325 / 2225389, Fax: 2363207, E-mail: baroda@ karvy.com

BANGALORE
Tel. No.: 080-6621184 / 6621192, Fax: 6621169, E-mail: bglcustomercare@karvy.com

KOCHI
Tel. No.: 0484-2310884 / 2322152, Fax: 2323104, E-mail: cochin@karvy.com

BHOPAL
Tel. No.: 0755-2559332 / 2559337 /2574589 / 2574569, E-mail: ashutosh.dwivedi@karvy.com

PUNE
Tel. No.: 020-4048790, Fax: 25456842, E-mail: pune@karvy.com

BHUBANESHWAR
Tel. No.: 0674-2511013 / 2511014 / 2511015, Fax: 0674-2511012, E-mail: kclbbsr@karvy.com

CHANDIGARH
Tel. No.: 0172-5071726 /5071727/5071728, E-mail: chandigarh@karvy.com

CHENNAI
Tel. No.: 044-28153445 /28151034/ 28153658, Fax: 28153181, E-mail: chennaiirc@karvy.com

LUCKNOW
Tel. No.: 0522-2236820 to 26, Fax: 2236826, E-mail: customercare.up@karvy.com

JAIPUR
Tel. No.: 0141-2375099 / 2363321 / 2375039, Fax: 2364660, E-mail: jaipur@karvy.com

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