Daijiworld Media Network - Mangaluru (SP)

Mangaluru, Mar 9: In tune with the government's initiative to sell part of their shares to the general public, 25 percent shares in Mangalore Refinery and Petrochemicals Ltd (MRPL) are likely to be sold to the general public, sources say.

Currently, 11.42 percent shares of MRPL are held by the general public.  Oil and Natural Gas Corporation Ltd (ONGC) holds  71.63 percent shares in MRPL, while the balance 16.95 percent shares are held by Hindustan Petroleum Corporation Ltd (HPCL).

Securities and Exchange Board of India (SEBI) had circulated a notification in October 2014 as per which public sector companies were asked to increase public holding of its shares to at least 25 percent. If MRPL falls in line with this rule, it will benefit the investors of the company while the government's fund position will also ease. It is gathered that neither the ONGC nor HPCL have arrived at any decision on offloading of their holdings, and whenever a decision is taken, both these companies will together implement it, sources stated.

In all possibility, a final decision might be taken within two months from now. It is learnt that the company may also think of increasing its capital base when making the public offer.