ONGC shares in focus after investment in subsidiary, acquisition of PTC Energy

The shares of Oil and Natural Gas Corporation (ONGC) are likely to remain in focus on Tuesday, February 25 after announcing that it will invest Rs 1,200 crore in its wholly-owned subsidiary ONGC Green Ltd (OGL) and also signed a share purchase agreement (SPA) for acquiring PTC Energy.

Fund infusion in subsidiary

ONGC has planned to infuse Rs 1,200 crore in OGL through the subscription of rights offer issued by the latter.


“In continuation of our filing dated 05.03.2024, the Company shall make investment in ONGC Green Limited (OGL) by infusing Rs 1,200 Crore (Rupees One-Thousand Two Hundred Crore) by way of subscription to the Rights Offer of equity shares issued by OGL,” said the company in an exchange filing.

Acquisition of PTC Energy

Additionally, ONGC informed the stock exchanges that it has signed an SPA for a 100% stake acquisition of PTC Energy.

“In continuation of our filing dated 13.09.2024, w.r.t signing of Share Purchase Agreement for acquisition of 100% equity stake of PTC Energy Limited, it is hereby informed that OGL shall utilise the Rights Equity Share capital proceeds for investments in acquisition of 100% Equity stake of PTC Energy Limited,” ONGC said.


Additionally, the company's Board of Directors has approved the replacement of a corporate guarantee of Rs 75 crore on behalf of OGL for PTC Energy.

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ONGC share price performance

In the last one year, the shares of ONGC have declined by 13.84%. On a year-to-date (YTD) basis, the decrease is 1.12%. In the last six months, the price has dropped by 26.56% while over the past three months, the stock has fallen by 4.52%.

ONGC shares closed 2.3% lower at Rs 234.35 on the BSE on Monday.

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