ONGC To Sell OPaL Stake To Fund HPCL Buy

ONGC To Sell OPaL Stake To Fund HPCL Buy

State-owned Oil and Natural Gas Corp may sell stake in its mega petrochemical project in Gujarat to fund acquisition of Hindustan Petroleum Corp Ltd (HPCL), a senior official said.

ONGCBSE -0.28 % had borrowed money from banks to buy government’s 51.11 per cent stake in HPCL for Rs 36,915 crore.

“We traditionally have been a debt-free company and would like to return to that status as soon as possible. We have assets which can be monetised to payoff the debt,” he said.

ONGC holds 13.77 per cent stake in nation’s biggest refiner Indian Oil Corp (IOC), which at today’s trading price is worth close to Rs 26,000 crore. It also holds 4.86 per cent stake in gas utility GAIL India Ltd, which is worth over Rs 3,600 crore. Read More…

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