Oil and Natural Gas Corporation Ltd. is looking into acquiring the other stakes in petrochemical firm ONGC Petro additions Ltd., according to a Sept. 11 report from Reuters, citing the company's director of finance Subhash Kumar.
The Indian integrated oil and gas company is considering the option of converting the company into a subsidiary through the conversion of share warrants and debenture into equity. Kumar told Reuters ONGC's stake in the company could increase to 70% upon conversion of 26 billion rupees of share warrants into equity and to around 93% upon conversion of 77.78 billion rupees of debentures into shareholdings.
The Indian firm currently holds a 49.36% stake in the company while gas utility Gail (India) Ltd. owns a 49.21% interest. Gujarat State Petroleum Corp. Ltd. holds the remaining stake.
ONGC will decide by the end of its fiscal year on whether ONGC Petro will be a subsidiary, Reuters reported. ONGC is also planning to list the company in another two years after the conversion.
As of Sept. 10, US$1 was equivalent to 71.91 Indian rupees.
