ONGC increases stake in subsidiary OPaL to 95.69%

4 Dec 2024 , 09:22 AM

On Tuesday (December 3), ONGC increased its equity holding in ONGC Petro Additions Ltd (OPaL) from 94.57% to 95.69% through a rights issuance of 490.6 Crore equity shares at ₹10 each. The investment totaled ₹4,906.20 Crore.

OPaL operates a cutting-edge petrochemical complex encompassing five square kilometers, with a production capacity of 1.1 million tonnes per annum (MTPA) of polyethylene, 1,100 KTPA of ethylene, and 400 KTPA of propylene. The complex also includes modern facilities for pyrolysis gasoline hydrogenation, butadiene extraction, and benzene extraction.

In FY24, OPaL generated a turnover of ₹14,323 Crore. The increased investment was agreed by ONGC’s board on September 25, 2024, and is consistent with the Government of India’s desire to strengthen the company’s downstream integration. The rights issue was made available on equal terms to all existing shareholders, ensuring conformity with governance standards.

The oil giant’s revenue stood at ₹33,881 Crore in the quarter under review, down 4% from ₹35,266 Crore in the previous quarter. EBITDA for the quarter was ₹17,025.2 Crore, somewhat higher than the previous quarter’s ₹16,974 Crore but significantly lower than the projection of ₹17,199 Crore.

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