ONGC Group commences process to sell 26% stake in soon-to-be commissioned aromatics unit in Mangalore

23-Jul-13

ONGC Group has started the process to sell 26% stake in its soon-to-be commissioned aromatics unit in Mangalore as part of its strategy to unlock value from its vast assets. Promoter ONGC and its subsidiary Mangalore Refineries & Petrochemicals (MRPL) has mandated two financial advisers, ICICI Securities and Deloitte, to identify potential suitors. The move is also to find a valuation for the aromatics unit that will aid in the price discovery process of itsinitial public offering (IPO). The unit, ONGC Mangalore Petrochemicals (OMPL), has been built at a cost of Rs 5,800 crore to produce paraxylene and benzene, key raw materials for petrochemical intermediaries. The plant will go onstream by October. ONGC also intends to divest another 25% through an IPO in the future. The promoter group will eventually hold 49% stake of OMPL, in which they have so far infused Rs 980 crore.