ONGC to invest Rs 15,000 crore in OPaL

8 Sep 2023 , 09:30 AM

The state-owned Oil and Natural Gas Corporation (ONGC) would invest approximately Rs 15,000 crore in OPaL as part of a financial restructuring that will see GAIL exit the petrochemical sector.

ONGC currently owns 49.36% of ONGC Petro-additions Ltd (OPaL), which operates a massive petrochemical facility in Dahej, Gujarat. GAIL (India) Ltd owns 49.21% of the company, with Gujarat State Petrochemical Corp (GSPC) owning the remaining 1.43%.

Last week, the ONGC board of directors approved a financial reorganization of the Petchem firm, which had been losing money due to its enormous debt.

According to a stock exchange filing, ONGC would convert share warrants into equity, buy back debentures, and invest Rs 7,000 crore more equity, giving it a 95% interest.

The proposal authorized involves the ‘conversion of share warrants issued by OPaL and subscribed to by ONGC into equity shares upon payment of final call money of Rs 86.281 crore at the rate of Rs 0.25 per warrant,’ said the company.

ONGC said that it will also buy back compulsory convertible debentures (CCDs) worth Rs 7,778 crore.

ONGC would also infuse Rs 7,000 crore in OPaL’s equity/quasi-equity security, according to the company.

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