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ONGC to Sell Stake in Petrochemical Arm
30 Jan
Summary
- ONGC plans a global tender to sell stake in its subsidiary, OPaL.
- The move aims to return OPaL to a joint venture structure.
- Recent capital restructuring aimed to ease OPaL's financial challenges.
Oil and Natural Gas Corp. (ONGC) is set to launch a global tender to divest its stake in its petrochemical subsidiary, ONGC Petro additions (OPaL). This initiative is part of a broader government mandate to monetize assets and aims to re-establish OPaL as a joint venture. ONGC currently holds a substantial 95.69% stake in OPaL.
This divestment follows a significant financial restructuring approved in August 2024, involving an equity infusion of up to ₹10,501 crore and the conversion of debentures totaling ₹7,778 crore. These measures were implemented to alleviate OPaL's financial difficulties and enhance its operational capabilities. The company also received approval for gas allocation to ensure feedstock stability.
In fiscal year 2025, OPaL reported increased petrochemical product sales and revenue. The company, established in 2006, exited the Dahej Special Economic Zone in March 2025. India's petrochemical sector is projected for robust growth, with global producers viewing India as a key demand driver amidst evolving market conditions.
