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ONGC Approves ₹1,200 Crore Investment in ONGC Green for PTC Energy Buy

Synopsis:

ONGC has approved a ₹1,200 crore investment in ONGC Green Ltd for acquiring PTC Energy. The funds will be infused through a Rights Offer of equity shares. ONGC share price fell 2.31%, closing at ₹234.35 on BSE. The Board also approved a ₹75 crore corporate guarantee replacement.


State-owned Oil and Natural Gas Corporation (ONGC) has approved an investment of ₹1,200 crore in its wholly owned subsidiary, ONGC Green Ltd (OGL), through a Rights Offer of equity shares. The funding will be utilised for acquiring a 100% equity stake in PTC Energy Limited, in line with the Share Purchase Agreement signed on 13 September 2024. The decision was made during ONGC’s Board meeting on 24 February 2025.

Also read: NTPC & NTPC Green Energy to Invest ₹2 Lakh Crore in Madhya Pradesh

OIL AND NATURAL GAS CORP.

Trade

233-1.35 (-0.57 %)

Updated - [-]
236.70day high
DAY HIGH
232.55day low
DAY LOW
5519036
VOLUME (BSE)

Key Takeaways

  • ONGC will invest ₹1,200 crore in ONGC Green through a Rights Offer.

  • The funds will be used for acquiring PTC Energy Limited.

  • ONGC’s Board has approved replacing a ₹75 crore corporate guarantee on behalf of OGL.

  • ONGC share price declined by 2.31%, closing at ₹234.35 on BSE.

Also read: Biocon Biologics Launches YESINTEK Biosimilar in US for Autoimmune Diseases

ONGC’s Expansion in Renewable Energy

With this investment, ONGC continues its diversification into the renewable energy sector, reinforcing its commitment to sustainability. PTC Energy Limited, a subsidiary of PTC India, has a renewable energy portfolio that includes wind power assets across various states. The acquisition aligns with ONGC’s strategy to expand its green energy footprint and reduce dependency on conventional fuel sources.

OGL, a dedicated renewable energy subsidiary of ONGC, will utilise the Rights Equity Share capital proceeds to complete the acquisition of PTC Energy. Additionally, the Board has approved the replacement of a ₹75 crore corporate guarantee for PTC Energy Limited, further strengthening ONGC’s financial backing in the deal.

ONGC’s Market Performance

Following the announcement, ONGC share price witnessed a decline, closing at ₹234.35, down by ₹5.55 or 2.31% on the BSE. Market reactions indicate investor caution regarding the investment's immediate impact on ONGC’s balance sheet, despite its long-term sustainability goals.

Investment Breakdown

Investment Details

Amount (₹ crore)

ONGC Green Investment

1,200

Purpose

PTC Energy Acquisition

Corporate Guarantee

75

ONGC’s investment in ONGC Green for the PTC Energy acquisition is a strategic step towards expanding its renewable energy portfolio. While the short-term market response has been cautious, this move aligns with ONGC’s long-term sustainability vision, strengthening its position in the green energy sector.

Also read: Govt Seeks Merchant Bankers for PSU Stake Sale in Banks & Financial Firms

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Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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