MRPL gains after board approves acquisition of OMPL's shares from ONGC

MRPL rose 2.3% to Rs 26.70 after the company said its board has approved acquisition of the remaining 49% in ONGC Mangalore Petrochemicals from ONGC.

The board of MRPL on 19 October 2020, approved the acquisition of 1,24,66,53,746 equity shares of ONGC Mangalore Petrochemicals (OMPL) from ONGC, an existing shareholder of OMPL. Such acquisition is subject to customary consents and approvals, MRPL said.

MRPL held 51.0017% of the paid-up equity of OMPL, which has been increased to 99.9998% pursuant to the acquisition of equity shares from ONGC, it said.

OMPL, a subsidiary of MRPL, is a joint venture between ONGC and MRPL, set up for value addition of excess naphtha and aromatic streams available from MRPL refinery. The complex is the largest single stream unit in Asia to produce 914 KTPA Para-xylene and 283 KTPA Benzene.

MRPL is a subsidiary of ONGC and schedule 'A' Miniratna, Central Public Sector Enterprise (CPSE) under the Ministry of Petroleum & Natural Gas. As of 30 September 2020, ONGC held 71.63% and HPCL held 16.96% stake in MRPL.

Shares of ONGC were down 1.66% at Rs 68.1 on BSE.

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