ONGC to Invest Rs 15,000 Crore in OPaL, Make GAIL a Minority Shareholder
ONGC's investment will raise its stake in OPaL to about 95%, making it the majority shareholder.
New Delhi: In a major push under petrochemical projects India's Central public sector underatking, Oil and Natural Gas Corporation announced its plans to o invest approximately Rs 15,000 crore in ONGC Petro-additions Ltd (OPaL) as part of a financial restructuring exercise. The move will see gas utility GAIL being edged out of the petrochemical firm.
ONGC's investment will raise its stake in OPaL to about 95%, making it the majority shareholder. The financial restructuring includes converting share warrants into equity, buying back debentures, and injecting additional equity.
Read Also : Mines Ministry to Hold Two-day Critical Minerals Summit from todayCurrently, ONGC holds a 49.36% stake in OPaL, while GAIL holds 49.21%, and the remaining 1.43% is in the Gujarat State Petrochemicals Corporation (GSPC) hand.
OPaL is a petrochemical complex located at Dahej in Gujarat. This restructuring is aimed at addressing OPaL's high debt and improving its profitability. After the restructuring, GAIL and Gujarat State Petrochemical Corp (GSPC) will hold a combined 5% stake in OPaL.
The completion of this investment will solidify ONGC's position in the petrochemical industry and pave the way for a more profitable future for OPaL
Read Also : POWERGRID awarded Appreciation Certificate as Project ConsultantONGC will also invest Rs 7,000 crore in equity/quasi-equity security of OPaL.
Once the restructuring is complete, OPaL will become a subsidiary of ONGC. GAIL will exit the board of OPaL.
The financial restructuring of OPaL is part of ONGC's strategy to become a leading player in the petrochemical sector. ONGC is also planning to set up a new petrochemical complex at Dahej.
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