ONGC Hikes Stake in Subsidiary OPaL via Rights Issue

State-owned ONGC announced that it has increased its stake in subsidiary ONGC Petro Additions Ltd (OPaL) from 94.57% to 95.69% by subscribing to 490.6 crore shares at ₹10 each via a ₹4,906.20 crore rights issue.

OPaL Company Profile and Financial Highlight

OPaL operates a cutting-edge petrochemical facility covering five square kilometres, with an annual production capacity of 1.1 million tonnes of polyethylene, 1,100 KTPA of ethylene, and 400 KTPA of propylene.

The plant also includes advanced units for processing pyrolysis gasoline, extracting butadiene, and isolating benzene. For FY24, the company achieved a revenue of ₹14,323 crore.

ONGC’s board approved the additional investment on September 25, 2024, aligning with the government’s push to enhance the company’s downstream capabilities. The rights issue offered equally to all shareholders, adhered to governance standards.

ONGC Q2 FY25 Financial Highlight

ONGC reported a 17% year-on-year rise in standalone net profit for Q2 FY25, reaching ₹11,984 crore, compared to ₹10,238 crore in the same period last year. However, revenue from operations saw a 4% decline, amounting to ₹33,881 crore versus ₹35,163 crore a year earlier.

For the quarter, ONGC recorded an EBITDA of ₹18,236 crore, with an EBITDA margin of 53.8%. These figures highlight strong profitability despite the drop in operational revenue.

ONGC Share Price Movement

On December 4, 2024, ONGC’s share price (NSE: ONGC) was trading 0.15% lower at ₹262.10 at 2:00 PM on the NSE. The stock had opened at ₹263.85, slightly above its previous close of ₹263.35.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.