Conversion

ONGC Increases Stake In OPaL To 91.16% Following CCD Transformation

.Oil and also Natural Gas Enterprise (ONGC) has actually increased its shareholding in ONGC Petro additions Limited (OPaL) to 91.16%, adhering to the conversion of Compulsorily Convertible Bonds (CCDs).
What Happened: The news was actually made through ONGC on Thursday evening. The business's board had actually approved the buy-back of CCDs provided through OPaL worth 7,778 crore in three tranches coming from financial institutions, banking companies, stock funds, and also other holders. The conversion of these CCDs into equity shares resulted in the slice of 61,070 lakh equity allotments to ONGC.
The conversion of pair of tranches of CCDs (I &amp III tranches of 5,615 crore and 492 crore respectively) totaling up to 6,107 crore brought about the increase in ONGC's risk in OPaL from 81.28% to 91.16%.
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" Upon issuance of 61,070 lakh shares, the shareholding of the Company in OPaL increased from 81.28% to 91.16% equity reveals," the firm stated in its official communication.
Last month, ONGC protected commendation from the Federal government of India to spend 18,365 crore in to OPaL. This allowed financial investment featured an additional equity financing infusion of as much as 10,501 crore, transformation of CCDs worth 7,778 crore, as well as a balance remittance of 86 crore concerning share warrants. This assets was actually expected to lift OPaL to a subsidiary of ONGC, along with the second owning a 95.69% capital risk.
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