Oil & Natural Gas Corporation Ltd.

Oil and Natural Gas Corporation (ONGC) will raise its first debt ever, of Rs 25,000 crore, to part fund the Rs 37,000 crore acquisition of government’s stake in Hindustan Petroleum Corporation (HPCL). The company has about Rs 13,000 crore in cash and would need to borrow the rest to fund the buying of government’s 51.11% stake in HPCL.

ONGC has sought shareholder approval for borrowing/ raising funds in Indian rupee and/ or foreign currency by issue of debt instruments (including bonds, non-convertible debentures and notes) of Rs 25,000 crore in domestic and/ or overseas market.

Oil and Natural Gas Corporation (ONGC) is India’s largest government-run corporation and produces about 70% of India’s crude oil and natural gas. The corporation is the biggest public sector commercial organization in India.