Oil and Natural Gas Corporation Limited (ONGC) has increased its equity shareholding in ONGC Petro Additions Ltd. (OPaL) from 91.16% to 94.04%. This follows the subscription of 5,59,47,96,935 equity shares, each priced at ₹10, through a rights issue. The total investment made by ONGC in this acquisition is ₹5,594.79 crore.
Key Highlights of the Acquisition:
- Increased Shareholding: ONGC’s stake in OPaL has risen by 2.88%, now holding 94.04% of the equity shares.
- Investment Amount: ONGC has invested a total of ₹5,594.79 crore in this round of share allotment.
- Strategic Objective: The investment aligns with ONGC’s strategy of vertical integration into the downstream petrochemicals sector. This move strengthens ONGC’s foothold in the petrochemical business.
About ONGC Petro Additions Ltd. (OPaL):
- Industry: OPaL operates in the petrochemical industry, with a mega petrochemical complex located in Dahej SEZ, Gujarat.
- Production Capacity: OPaL produces 14 lakh tons of polymers and 5 lakh tons of chemicals annually. The facility includes units for Ethylene, Propylene, and associated chemicals.
- Turnover: The company reported a turnover of ₹14,323 crore in FY24, following ₹14,628 crore in FY23 and ₹16,065 crore in FY22.
This latest move underscores ONGC’s commitment to expanding its presence in the petrochemical sector and aligns with the government’s vision for strengthening the country’s industrial capacity.