OPaL may take IPO route for funding petrochem project

ONGC Petro-additions Ltd (OPaL), the petrochemicals special purpose vehicle of state-owned explorer Oil and Natural Gas Corporation, is exploring the option of a public issue to part-finance its Rs12,500-crore petrochemical chemical complex being commissioned at Dahej, Gujarat.
Various fund-raising avenues were being considered, including an IPO offer, A K Balyan, director (human resources), ONGC, said at a press meet in Mumbai on Wednesday.

He also said liquefied gas importer Petronet LNG Ltd is keen on taking a 10 per cent stake in the project and that the OPaL board will take a call on this soon.

ONGC and GAIL (India) hold 26 per cent and 19 per cent, respectively, in OPaL while the Gujarat government through the Gujarat State Petroleum Corporation holds five per cent equity.

The petrochemicals complex will have a capacity of 1.1 million tonnes per annum.

Balyan said the company has already awarded equipment contracts worth Rs7,000-crore to a consortium of Germany's Linde and Korea's Samsung. Besides, Ineos has been chosen as a technology licensee for polyproplene.

Balyan said the project has completed financial closure with help from a consortium of over 20 banks led by State Bank of India. The board will today review new project contracts and the progress of ongoing work, he added.