OPaL mulls IPO just before completion of petrochemical project targeted for December 2012

ONGC Petro-additions Ltd (OPaL) is mulling an IPO just before completion of the Rs.12,440 crore petrochemical project targeted for December 2012. This is India's largest dual feed cracker unit plant with ethylene cracking capacity of 1.1 mln tpa, to be located at the Dahej special economic zone (SEZ). Including all its products, the complex will have a capacity of 1.9 mln tpa. The contract for the dual-feed cracker job has been awarded to a combine of Germany's Linde Group and Samsung Corporation. It has a signed MoU with ONGC for supply of naphtha and C2C3 feedstock (ethylene, toluene etc) from its Hazira and Uran plants. OPaL is a joint venture promoted by Oil and Natural Gas Commission (ONGC-26% stake), Gas Authority of India Ltd (GAIL- 19% stake) and Gujarat State Petroleum Corporation (GSPC- 5% stake), is slated to hit the capital market in 2012 with an initial public offering (IPO) for the Rs.12,440-crore mega petrochemical complex coming up here. Petronet LNG Ltd (PLL) is also set to pick up a 10% stake in the project as a strategic partner. It has achieved financial closure for the estimated project cost of Rs. 12,440 crore with a debt-equity ratio will be 70:30. Debt has been tied up with a consortium of 26 banks last year for Rs. 8,706 crore with an interest rate of 12%.
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