ONGC to invest ₹15,000 crore in OPaL to take majority control; GAIL to sit out as part of restructuring
₹15,000 crore in ONGC Petro-additions Ltd (OPaL) as part of a financial restructuring exercise. The move will result in gas utility GAIL being edged out of the petrochemical firm, according to a report by news agency PTI.
ONGC currently holds 49.36 per cent stake in OPaL, which operates a mega petrochemical plant at Dahej in Gujarat. GAIL (India) Ltd has 49.21 per cent interest and Gujarat State Petrochemical Corp (GSPC) has the remaining 1.43 per cent, according to the report.
Last week, ONGC's board approved a financial restructuring of the petchem firm which had been making losses due to its high debt. ONGC will convert share warrants into equity, buy-back debentures and invest ₹7,000 crore more equity, which will give it about 95 per cent stake, according to a regulatory filing by the refiner to the stock exchanges.
The proposal approved includes "conversion of share warrants issued by OPaL and subscribed by ONGC into equity shares upon payment of final call money of ₹86.281 crore at the rate of ₹0.25 per warrant," it said. MORE TO COME…
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