New Delhi, June 23 (PTI): State-owned Oil and Natural Gas Corporation Ltd (ONGC) is mulling listing its overseas investment arm ONGC Videsh Ltd (OVL) next year to raise funds for foreign acquisitions.
In its Perspective Plan 2030, ONGC has estimated that OVL’s properties will produce 20 million tonnes of oil and oil equivalent gas by 2017 and 60 million tonnes by 2030. At present, these overseas properties produce 9 million tonnes.
“To achieve this, the company has to pursue aggressive acquisitions of both exploration and producing assets,” a source said. “These kind of targets need several billion dollars, all of which cannot come from its parent ONGC.”
To meet the huge requirement, the company may go for an initial public offering (IPO) of at least 10 per cent equity shares.
“Preparatory work for the IPO will begin in the next few days,” he said. “The work involves the preparation of updated financial accounts and appointment of independent directors.”
Thereafter, prospectus for the public offering would be prepared and merchant bankers appointed.
“The IPO is not likely before 2013,” the source said. OVL, which has 31 overseas oil and gas projects, besides interest in a couple of pipelines, is the nation’s second-largest exploration and production company. It is 100 per cent owned by ONGC.