ONGC mulls IPO of upto 25% of equity shares in ONGC Petro-additions Ltd (OPaL)

07-Nov-08

Oil and Natural Gas Corp (ONGC) is looking at an initial public offering (IPO) of ONGC Petro-additions Ltd (OPaL) - a the special purpose vehicle formed for setting a Rs 13600 cr petrochemical plant at Dahej. The IPO is being considered around the time of project completion in 2012, wherein ONGC is considering offering upto 25% of the equity shares in 19% equity stake in OPaL is being planned to be given to state-run gas utility GAIL India, while another 25% interest may be offered to Petronet LNG and Bharat Petroleum or a strategic partner. ONGC holds 26% stake in OPaL, while Gujarat State Petroleum Corp (GSPC) holds 5% stake. OPaL will use C2-C3 (ethane and propane) compounds extracted from imported liquefied natural gas (LNG) to make polymers at the proposed plant.