ONGC considers buying out rest of Western India petrochemical project


ONGC considers buying out rest of Western India petrochemical project

India’s Oil and Natural Gas Corp plans to buy out the rest of a western Indian petrochemical project it does not already own and launch a public offering if it fails to find a strategic partner for it, its head of finance said on Tuesday.

ONGC Petro additions (OPaL), majority-owned by ONGC, is primarily a polymer manufacturer, a chemical compound used in everything from textiles to plastics and packaging.

“We are looking at various options. Our first preference is to convert OPaL into a subsidiary by converting share warrants and debenture into equity if we don’t get a strategic partner,” Subhash Kumar, ONGC’s director of finance told Reuters. “Another option is to merge OPaL with ONGC.”

ONGC will decide by the end of its fiscal year on whether to make OPaL a subsidiary, he said.

“After making it a subsidiary, it will take another two years to list the company,” Kumar said. Read More

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