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An ONGC plant in Maharashtra. The floor price for the offer is set at Rs159 apiece. Image Credit: Bloomberg

India plans to sell as much as 1.5 per cent stake in state-run Oil & Natural Gas Corp. via an offer for sale starting Wednesday, according to an exchange filing.

The floor price for the offer is set at Rs159 apiece. The government aims to raise Rs30 billion ($397 million) from the share sale, which is for two days beginning Wednesday for non-retail investors and Thursday for retail.

The divestment, before the close of the financial year on March 31, comes after the government deferred an initial public offer for the country’s largest insurer Life Insurance Corp. to next year due to market volatility.

In its February 1 budget, the government slashed its asset sale target to Rs780 billion from Rs1.75 trillion budgeted earlier. It has, however, raised only Rs124 billion so far.

ONGC shares fell 3 per cent at the close to Rs171 in Mumbai on Tuesday.