The shares of one of the largest crude oil and natural gas Company in India, specialized in providing integrated services in the oil and gas sector, are in focus upon approval of the acquisition of 100 percent of the shares in Ayana Renewable Power by ONGC Green (OGL) and NTPC Green Energy Ltd (NGEL)
Price action
With a market capitalization of Rs. 2,82,741.78 Crores on Wednesday, the shares of Oil and Natural Gas Corporation Ltd jumped upto 0.9 percent making a high of Rs. 228.90 compared to its previous closing price of Rs. 226.65.
What Happened
As per the sources, On Tuesday, March 11, the Competition Commission of India has approved ONGC-NTPC Green’s proposal to acquire the renewable energy firm Ayana for Rs. 19,500 crore ($2.3 billion).
ONGC-NTPC Green Pvt Ltd (ONGPL) is a 50:50 joint venture between ONGC Green (OGL) and NTPC Green Energy Ltd (NGEL). The proposed transaction involves the acquisition of 100 percent equity share capital of the target, Ayana Renewable Power, by the acquirer, ONGC Green and NTPC Green Energy, which are wholly owned subsidiaries of Oil and Natural Gas Corporation Ltd (ONGC) and NTPC Ltd.
Ayana, a leading renewable energy platform, has about 4.1 GW of operational and under-construction assets strategically located across resource-rich states. It has around 3 GW under development, comprising solar, wind, hybrid & and round-the-clock (RTC) renewable assets with firm power purchase agreements.
About the company
Oil and Natural Gas Corporation Ltd (ONGC) is India’s largest oil and gas exploration and production company. It specializes in the exploration, development, and production of crude oil and natural gas from both onshore and offshore fields. ONGC plays a key role in meeting India’s energy needs and is involved in various energy sectors, including renewable energy and petrochemicals.
Capex Plans FY26
The planned capital expenditure (Capex) for FY’26 is Rs. 36,920 crore, with allocations as follows: 8 percent for surveys, 20 percent for exploratory drilling, 30 percent for development drilling, 38 percent for capital projects, 2 percent for R&D, and 2 percent for integration projects.
Financials
The company’s revenue declined by 0.66 percent from Rs. 1,69,628 crore to Rs. 1,68,507 crore in Q3FY24-25. Meanwhile, Net profit declined from Rs. 10,356 crores to Rs. 8,621.69 crore during the same period.
Written by Sridhar J
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