ONGC mulls IPO for Dahej subsidiary, consents to allot 19% stake to GAIL

02-Mar-09

Oil and Natural Gas Corp (ONGC) is planning an initial public offering (IPO) in about 18 months, to hive off up to 25% equity stake in ONGC Petro-additions Ltd (OPaL), the special purpose vehicle formed for setting up the petrochemical complex at Dahej SEZ. OPaL is building the Rs 12,440 crore petrochemical plant, scheduled to be complete in 2011 or early 2012. ONGC has also consented to offer a 19% stake in the project to state gas utility GAIL India, instead of the initial 9%. About 20-25% stake will be offered to a foreign partner who is either a product offtaker or a marketer. 26% stake in OPaL is held by ONGC, and 5% is held by Gujarat State Petroleum Corp (GSPC).