ONGC Stake Update: PSU Increases Investment In This Subsidiary - Details

Oil and Natural Gas Corporation (ONGC) raised its stake in its subsidiary, ONGC Petro Additions Limited (OPaL), from 94.57 per cent to 95.69 per cent.

The company raised its stake in OPaL through the subscription of 490.6 crore equity shares at Rs 10 each through a rights issue. The total investment was Rs 4,906.20 crore.

OPaL had a turnover of Rs 14,323 crore in the financial year 2023-24 (FY24). Earlier, it had a turnover of Rs 14,628 and Rs 16,065 in FY23 and FY22, respectively.

ONGC Group's Board of Directors approved the additional investment. The investment was made in line with the approval of the government at its meeting held on September 25, 2024.

Since the downstream sector policy in the petroleum sector was increasing the fragility and instability within the sector, this decision comes in line with the government's objective of vertical integration.

OPaL operates a mega petrochemical complex that is spread over 5 sq km. The complex has a capacity to produce 14 lakh tonnes of polymers and 5 lakh tonnes of chemicals.

Shares of Oil and Natural Gas Corporation Ltd closed at Rs 262.25, up by Rs 4.65, or 1.81 per cent, on the BSE.

ONGC had earlier reported a net profit of Rs 11,984 crore, up by 34 per cent quarter-on-quarter (QoQ). 

There was an increase in the company's margins supported by higher operational efficiency and the oil major's EBITDA margin increased from 48.1 per cent, in the previous quarter to 50.3 per cent.