OPaL
ONGC to inject Rs 15,000 cr in OPaL
New Delhi: Oil and Natural Gas Corporation (ONGC) will inject about Rs 15,000 crore in OPaL as part of a financial restructuring exercise.
The state-owned company holds a 49.36 percent share in ONGC Petro-additions Ltd (OPaL).
Government-run utility GAIL (India) Ltd has a 49.21 percent stake and Gujarat State Petrochemical Corp (GSPC) has the remaining 1.43 percent in OPaL.
The ONGC board last week 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 Rs 7,000 crore more equity, which will give it about 95 percent stake, the company said in a stock exchange filing.
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 Rs 86.281 crore at the rate of Rs 0.25 per warrant," it said.
Also, ONGC will "buy back compulsory convertible debentures (CCDs) of Rs 7,778 crore." CCDs issued by OPaL with backstopping support of ONGC are presently held by financial institutions. ONGC will also invest Rs 7,000 crore in equity/quasi-equity security of OPaL, it said.
Upon implementation, OPaL would become a subsidiary of ONGC, it added. The financial restructuring "will augment the holding of ONGC in OPaL and OPaL will become more profitable," it said, adding that the total cost of acquisition would be Rs 14,864.281 crore.
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