ONGC invests Rs 150 bn in OPaL, GAIL to take control
OIL & GAS

ONGC invests Rs 150 bn in OPaL, GAIL to take control

The state-owned Oil and Natural Gas Corporation (ONGC) has announced its plan to inject approximately Rs 150 billion into OPaL as part of a financial restructuring initiative. This move will result in the gradual exit of gas utility company GAIL from the petrochemical firm. Currently, ONGC holds a 49.36% stake in ONGC Petro-additions (OPaL), which operates a large-scale petrochemical plant located in Dahej, Gujarat. Meanwhile, GAIL (India) holds a 49.21% interest, with the Gujarat State Petrochemical Corp (GSPC) possessing the remaining 1.43%.

The financial restructuring of the petrochemical firm, which had been facing losses due to its substantial debt, was approved by the ONGC board last week. ONGC intends to convert share warrants into equity and undertake a debenture buy-back, in addition to investing an additional Rs 70 billion in equity. As a result, ONGC's stake in OPaL is expected to increase to approximately 95%.

The approved proposal entails "the conversion of share warrants issued by OPaL and subscribed by ONGC into equity shares upon the payment of final call money amounting to Rs 860 million at the rate of Rs 0.25 per warrant," according to the company's statement. Furthermore, ONGC plans to "buy back compulsory convertible debentures (CCDs) worth Rs 77.78 billion." These CCDs were initially issued by OPaL with the support of ONGC and are currently held by financial institutions.

ONGC also intends to invest Rs 70 billion in equity or quasi-equity securities of OPaL. Once these measures are put into effect, OPaL will become a subsidiary of ONGC, the company confirmed.

This financial restructuring is expected to bolster ONGC's ownership in OPaL and enhance the profitability of OPaL. The total acquisition cost for these actions is estimated to be Rs 148.64 billion, according to the company's statement.

Also read: 
India aims to lead as green fuel refuelling hub for shipping
IREDA partners with Union Bank of India, BoB to boost RE growth

The state-owned Oil and Natural Gas Corporation (ONGC) has announced its plan to inject approximately Rs 150 billion into OPaL as part of a financial restructuring initiative. This move will result in the gradual exit of gas utility company GAIL from the petrochemical firm. Currently, ONGC holds a 49.36% stake in ONGC Petro-additions (OPaL), which operates a large-scale petrochemical plant located in Dahej, Gujarat. Meanwhile, GAIL (India) holds a 49.21% interest, with the Gujarat State Petrochemical Corp (GSPC) possessing the remaining 1.43%. The financial restructuring of the petrochemical firm, which had been facing losses due to its substantial debt, was approved by the ONGC board last week. ONGC intends to convert share warrants into equity and undertake a debenture buy-back, in addition to investing an additional Rs 70 billion in equity. As a result, ONGC's stake in OPaL is expected to increase to approximately 95%. The approved proposal entails the conversion of share warrants issued by OPaL and subscribed by ONGC into equity shares upon the payment of final call money amounting to Rs 860 million at the rate of Rs 0.25 per warrant, according to the company's statement. Furthermore, ONGC plans to buy back compulsory convertible debentures (CCDs) worth Rs 77.78 billion. These CCDs were initially issued by OPaL with the support of ONGC and are currently held by financial institutions. ONGC also intends to invest Rs 70 billion in equity or quasi-equity securities of OPaL. Once these measures are put into effect, OPaL will become a subsidiary of ONGC, the company confirmed. This financial restructuring is expected to bolster ONGC's ownership in OPaL and enhance the profitability of OPaL. The total acquisition cost for these actions is estimated to be Rs 148.64 billion, according to the company's statement. Also read:  India aims to lead as green fuel refuelling hub for shipping IREDA partners with Union Bank of India, BoB to boost RE growth

Related Stories

Gold Stories

Next Story
Infrastructure Urban

Vedanta Metal Bazaar Expands to Global Markets

Vedanta Aluminium has expanded its digital e-commerce platform, Vedanta Metal Bazaar, to international markets, enabling overseas customers to order and purchase aluminium products online.The platform will now be available to buyers across Asia, Europe, Africa and the Americas, providing a digital gateway for export transactions with 24x7 access.In FY26, Vedanta Metal Bazaar processed transactions worth nearly $4.1 billion, or over Rs 380 billion, and fulfilled more than 23,000 orders. The platform is also used regularly by more than 550 MSMEs in India alongside large OEM customers.The export ..

Next Story
Infrastructure Urban

Ramky Infrastructure Q1 FY27 Revenue Rises 24.3%

Ramky Infrastructure Limited reported a 24.3% year-on-year increase in consolidated revenue from operations to Rs 471.2 crore for Q1 FY27, compared with Rs 3.79 billion in the corresponding quarter of FY26.Standalone revenue from operations rose 27.5% YoY to Rs 4.51 billion from Rs 3.54 billion, while total standalone income increased 35% to Rs 5.32 billion.Consolidated profit before tax stood at Rs 540.9 million during the quarter. The company highlighted a sharp sequential improvement compared with a pre-exceptional loss of Rs 190.1 million in Q4 FY26.Two of the three projects awarded during..

Next Story
Technology

LTTS Launches AgenticIQ AI Platform for Engineering

L&T Technology Services (LTTS) has launched AgenticIQ, an end-to-end agentic AI platform designed for engineering and manufacturing organisations.The platform is aimed at helping enterprises move beyond isolated AI pilots by enabling autonomous, multi-agent workflows across engineering, product development, manufacturing, industrial operations and customer experience.AgenticIQ is built on LTTS’ Engineering Intelligence portfolio and converts existing engineering capabilities into specialised, reusable AI agents. Its planning-first architecture is embedded into engineering and production ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement