State-owned Oil and Natural Gas Corporation (ONGC) announced on Monday, February 24, 2025, that it 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 decision was taken during ONGC’s Board meeting held on the same day.
In a regulatory filing, ONGC stated, “In continuation of our filing dated 05.03.2024, the Company shall make an investment in ONGC Green Limited (OGL) by infusing ₹1,200 crore (Rupees One Thousand Two Hundred Crore) by way of subscription to the Rights Offer of equity shares issued by OGL.”
The capital infusion will support OGL’s strategic expansion in the renewable energy sector, further aligning with ONGC’s broader clean energy goals.
ONGC confirmed that the proceeds from the Rights Offer would be utilised for the acquisition of a 100% equity stake in PTC Energy Limited, as per the Share Purchase Agreement signed on September 13, 2024. This acquisition aligns with ONGC’s efforts to strengthen its renewable energy portfolio and expand its footprint in the clean energy sector.
“In continuation of our filing dated 13.09.2024, w.r.t signing of Share Purchase Agreement for the 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 added in its statement.
Additionally, ONGC’s Board has approved the replacement of a ₹75 crore corporate guarantee on behalf of OGL for PTC Energy Limited. This move ensures financial security for the acquisition and further strengthens ONGC Green’s financial structure.
The investment highlights ONGC’s commitment to diversifying into renewable energy and reducing its carbon footprint while bolstering its presence in India’s growing green energy market.
On February 25, 2025, ONGC share price traded 0.79% higher at ₹236.20 at 9:50 AM (IST). ONGC’s share price reached a 52-week high of ₹344.60, and a 52-week low of ₹225.35. As per BSE, the total traded volume for the stock stood at 0.57 lakh shares with a turnover of ₹1.35 crore.
At the current price, ONGC shares are trading at a price-to-earnings (P/E) ratio of 7.61x, based on its trailing 12-month earnings per share (EPS) of ₹31.03, and a price-to-book (P/B) ratio of 0.91, according to exchange data.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Feb 25, 2025, 9:57 AM IST
Dev Sethia
Dev is a content writer with over 2 years of experience at Business Today, Times of India, and Financial Express. He has also contributed stories in Hindi for BT Bazaar and Khalsa Bandhan News Paper. A journalism postgraduate from ACJ-Bloomberg, Dev enjoys spending his spare time on the cricket pitch.
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