ONGC to invest Rs 1,200 Crore in Subsidiary to fund PTC Energy Acquisition
Earlier, OGL signed a share purchase agreement with PTC India Ltd. to acquire a 100% stake in PEL, which operates 288.8 megawatts of wind power projects across Andhra Pradesh, Madhya Pradesh, and Karnataka.
ONGC to invest Rs 1,200 Crore in Subsidiary to fund PTC Energy Acquisition
The state-owned Oil & Natural Gas Corp. will purchase equity shares in a rights issue to invest Rs 1,200 crore in ONGC Green Ltd., its wholly owned subsidiary. An exchange filing on Monday stated that the purchase of PTC Energy Ltd. would be financed with the proceeds from the rights issue.
Earlier, OGL signed a share purchase agreement with PTC India Ltd. to acquire a 100% stake in PEL, which operates 288.8 megawatts of wind power projects across Andhra Pradesh, Madhya Pradesh, and Karnataka.
ONGC's board has approved providing a Rs 75-crore corporate guarantee on behalf of OGL for PEL. The investment is part of ONGC's broader strategy to accelerate its renewable energy transition and achieve net-zero emissions by 2038, the filing said.
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With an authorised capital of Rs 100 crore, OGL was established in February 2024 and specialises in carbon capture, green hydrogen, hydrogen derivatives, and a range of renewable energy sources, such as geothermal, wind, solar, tidal, and hydel.
In March 2024, the company approved an additional equity infusion of Rs 99 crore in OGL, along with an in-principle approval for an investment of Rs 1,100 crore at a later stage to support its business expansion.
Shares of the company are trading higher by 0.21% at Rs 234.85 with a dividend yield of 5.75%.
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