New Delhi: In a bid to meet the challenges posed by the soaring fiscal deficit, the centre had decided to disinvest the five percent stakes of the oil sector company ONGC through the auction process with a target to garner Rs. 12,000 crore. But the results were not as per the government’s expectations and only Rs 8,500 crore could be arranged through it.

Given the volatile situation of share market, the government had opted auction route for disinvestment of the stakes in ONGC. But after seeing the investors' response towards ONGC on Thursday, the government needs to rethink the way of floating ONGC shares into the market.

A total of 29.22 crore share bids were received out of which 19.92 crore came through NSE and remaining 9.3 crore bids were received through BSE. However, the government had proposed to invite auction for 42.77 crore shares of the company. Floor price for the shares had been decided at Rs 290 per share.

According to the experts, the applications were mostly in the price range of Rs 290-293. However, the impacts of the bidding process were also witnessed on the ONGC share prices in the stock market. On one hand bidding process was in progress, the share prices of the company were declining. It even traded below Rs 290.