OPaL plans to raise up to Rs 1,000 crore via 5-year bonds on Tuesday

ONGC Petro Additions Ltd (OPaL), a subsidiary of Oil and Natural Gas Corporation (ONGC), plans to raise up to Rs 1,000 crore through a non-convertible debenture (NCD) issue on Tuesday.

 

The base issue size is Rs 200 crore, with a green shoe option to retain oversubscription of up to Rs 800 crore. The NCDs have a tenor of five years, maturing on October 30, 2030. The pay-in and allotment date is scheduled for October 30, 2025.

 

The issuance is backed by an unconditional and irrevocable corporate guarantee from ONGC.

 

The issue has received a credit rating of AAA (CE)/Stable from both CRISIL and ICRA. The bonds carry an annual interest payment (IP) and will be offered through a closed bidding process under a uniform allocation method. The minimum application size is Rs 1 lakh and in multiples of Rs 1 lakh thereafter.

 

OPaL previously tapped the bond market 15 months ago by raising funds via three-year bonds.

 

Indian corporates raised over Rs 5.47 trillion through bonds in the domestic debt capital market during the first half of the current financial year (H1FY26). While fundraising was robust in Q1FY26, with Rs 3.44 trillion raised amid lower yields, activity slowed in Q2FY26, with Rs 2.03 trillion mobilised as yields hardened due to global and domestic factors.

 

That said, with the Reserve Bank of India (RBI) adopting a dovish stance, and banks likely to re-enter the bond market after remaining largely absent in Q1 and Q2, and investor appetite staying strong for short- to medium-term maturities, Q3FY26 is expected to see a notable revival in primary market activity, setting the stage for a stronger second half of the financial year, bond market experts said.