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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.
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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.
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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.
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 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.
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