The follow-on public offer (FPO) had been to open on September 20, but has been delay, Oil and Natural Gas Corp (ONGC) said in a statement towards the stock exchanges.
"The selling shareholder (government) has decided not to proceed using the aforementioned offer programme and shall evaluate its decision with regards to the offer in due course, " it said.
The organization did not give new dates for the FPO.
The actual Department of Disinvestment (DoD), which is in charge from the FPO, under which the government is selling a 5% risk in ONGC, yesterday sent out terse letters communicating the postponement from the share sale. It neither offered any reason for deferral from the FPO launch, nor new dates for the offer.
Sources aware of the development said the FPO is off for a minimum of two weeks.
DoD officials met investment bankers managing the ONGC issue this morning to discuss the future strategy. No details of the meeting were immediately available.
Several Ministers headed by Finance Minister Pranab Mukhejree was to satisfy today to fix a price band for the FPO, but that meeting may be postponed.
The government plans to sell 5%, or 427. seventy seven million shares, through the offer.
After the FPO, the government's stake in ONGC can come down to 69. 14% from the current 74. 14%.
The FPO was originally planned within the 2010-11 fiscal, but the launch was later deferred in order to April 5, as the company did not have a sufficient number of independent directors on its board to fulfill market regulator Sebi's listing norms.
It was then rescheduled with regard to July 5, but was again deferred due to undesirable market conditions.