The board of directors of Oil & Natural Gas Corp. approved on Wednesday an investment of over Rs 7,800 crore through the buyback of convertible bonds of ONGC Petro Additions Ltd. and the conversion of warrants into equity shares.
The state-owned petroleum major will buy back compulsorily convertible debentures of Rs 7,778 crore, issued in three tranches by OPaL, from financial institutions, banks, mutual funds and other holders on or before put, call, and buy option dates of the respective tranches and the conversion of the bonds into equity shares, according to an exchange filing.
ONGC will pay the balance call money of Rs 86.3 crore (at Rs 0.25 per warrant) to convert warrants held in OPaL into shares. The investments will raise ONGC's stake in OPaL from 49.36% to 92.27%.
OPaL, engaged in the production of upstream products like high-value petrochemical products, is a joint venture between ONGC, Gas Authority of India Ltd. and Gujarat State Petroleum Corp.
Shares of ONGC were trading 0.88% lower at Rs 327.2 apiece on the BSE, compared to a 0.05% advance in the benchmark Sensex at 2:55 p.m. The announcement came during market hours.
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