Oil and Natural Gas Corp (ONGC) is in discussions with 3-4 overseas players for a private equity placement. ONGC plans to incorporate this strategic partner for its mega petrochemical plant before its’ initial public offering (IPO) of the unit at Dahej, Gujarat. IPO of ONGC Petro-additions Ltd (OPaL) is being planned when the project nears completion, scheduled for Q1-2013. Talks are on with Itochu Corp of Japan, LyondellBasell and Ineos of UK to be a strategic partner with a possible offering of 20-25% stake.
The complex is being funded in a 2.55:1 debt-equity ratio and ONGC has got commitments from banks for over Rs 9,000 crore for the debt component.