Oil and Natural Gas Corporation Limited (ONGC) board approved the additional investment planned in OPaL which will raise the company’s ownership in OPaL to 92%.

What Happened: The Board of Directors of ONGC has given the green light for significant investments in ONGC Petro additions Limited (OPaL), the company informed the exchanges in a regulatory filing.

The board meeting, which took place on Wednesday, August 21, 2024, saw the approval of an investment of ₹86.281 crore for the payment of balance call money and a buy-back of Compulsorily Convertible Debentures (CCDs) worth ₹7,778 crore from financial institutions, banks, mutual funds, and other holders.

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These investments have been made following the Ministry of Petroleum & Natural Gas, Government of India’s approval for an additional equity infusion to ensure the viability of OPaL. The Indian government had approved ONGC’s plan to invest ₹18,365 crore into OPaL.

ONGC’s equity stake in OPaL, currently at 49.36%, will surge to 81.28% after the conversion of warrants into equity shares. The subsequent conversion of CCDs into equity shares will further boost the stake to 92.27%.

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