Singapore: The Oil and Natural Gas Corporation, which owns 49.36 per cent of petrochemical subsidiary OPaL, plans to buy out the rest of the stake in the project and launch a public offering if it fails to find a strategic partner for it, its head of finance said on Tuesday.
ONGC Petro additions Ltd (OPaL) is primarily a Dahej, Gujarat-based manufacturer of polymer, a chemical compound used in everything from textiles to plastics and packaging.
Gail (India) Ltd owns 49.21 per cent in the porject and the remaining 1.43 per cent is held by Gujarat State Petroleum Corp Ltd, as of March.
“We are looking at various options. Our first preference is to convert OPaL into a subsidiary by converting share warrants and debenture into equity if we don’t get a strategic partner,” Subhash Kumar, ONGC’s director of finance told Reuters. “Another option is to merge OPaL with ONGC.”
ONGC will decide by the end of its fiscal year on whether to make OPaL a subsidiary, he said.
“After making it a subsidiary, it will take another two years to list the company,” Kumar said.