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ONGC proposes to sell its stake in ONGC-Petro Additions Ltd (OPaL), to fund acquisition of HPCL.
As per a senior official, “We traditionally have been a debt-free company and would like to return to that status as soon as possible. We have assets which can be monetized to payoff the debt.” The company currently holds 13.77% stake in IOC and 4.86% in GAIL.
He further added that, the company will sell stakes in IOC and GAIL at right price and its not possible to sell all shares at a time, so as an alternative it can sell stake in OPaL.
Furthermore he stated, “We have invested Rs.30,000 crore in the project and always had plans to sell a minimum of 26% stake in the project to a strategic investor. Now that the plant has come up well and stabilized, this is the time to monetize it.”
