Oil and Natural Gas Corporation (ONGC) has increased its shareholding in ONGC Petro additions Limited (OPaL) to 91.16%, following the conversion of Compulsorily Convertible Debentures (CCDs).

What Happened: The announcement was made by ONGC on Thursday evening. The company’s board had approved the buy-back of CCDs issued by OPaL worth ₹7,778 crore in three tranches from financial institutions, banks, mutual funds, and other holders. The conversion of these CCDs into equity shares resulted in the allotment of 61,070 lakh equity shares to ONGC.

The conversion of two tranches of CCDs (I & III tranches of ₹5,615 crore and ₹492 crore; respectively) amounting to ₹6,107 crore led to the increase in ONGC’s stake in OPaL from 81.28% to 91.16%.

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“Upon issuance of 61,070 lakh shares, the shareholding of the Company in OPaL increased from 81.28% to 91.16% equity shares,” the company stated in its official communication.

Last month, ONGC secured approval from the Government of India to invest ₹18,365 crore into OPaL. This sanctioned investment included an additional equity capital infusion of up to ₹10,501 crore, conversion of CCDs worth ₹7,778 crore, and a balance payment of ₹86 crore pertaining to share warrants. This investment was expected to elevate OPaL to a subsidiary of ONGC, with the latter owning a 95.69% equity stake.

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