In a major business move set to reshape its renewable energy portfolio, the Oil and Natural Gas Corporation (ONGC) is poised to acquire a whopping 100% equity stake in PTC Energy Limited (PEL). This acquisition, which comes at an equity value of ₹925 Crore, marks a significant diversification for ONGC beyond its core E&P (Exploration and Production) business.

Diversification and Renewable Energy Focus

ONGC has long established its presence in sectors like petrochemicals, power, and SEZ (Special Economic Zone) development. But, in recent times, the company has shown a keen interest in renewable energy power generation. Backing up their commitment, they’ve already installed an impressive 189 MW capacity across multiple locations, spanning both wind and solar PV plants.

The Pivotal Acquisition Details

Delving into the details of this pivotal acquisition, it was revealed that ONGC’s bid to take over PTC Energy Limited, a subsidiary of PTC India Limited (PTC), found favor during PTC’s board meeting on 19th October 2023. However, it’s essential to note that the final acquisition, priced at ₹925 Crore, is subject to potential adjustments as per the bid format. The completion of this deal will hinge upon the fulfillment of Conditions Precedent, adherence to the share purchase agreement terms between ONGC and PTC, and necessary approvals as mandated by applicable laws.

With such strategic moves in the energy sector, ONGC continues to solidify its position as a dominant player, keen on expanding its horizons and enhancing its renewable energy footprint.

  Acquisition, Equity Stake, Oil and Natural Gas Corporation, ONGC, PTC, PTC Energy Limited, renewable energy