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ONGC eyes stake sale in PSUs to fund HPCL acquisition by Dec end

ONGC owns 14% stake in the Indian Oil Corporation and a 5% stake in the GAIL

ANI  |  New Delhi 


K Sarraf, the chairman and managing director of the and Natural Gas Corporation (ONGC), said that the firm is hoping to complete the selling of its existing stakes in other public sector undertakings (PSUs) to partly fund the of the Hindustan Petroleum (HPCL), by the end of December.

"There are many funding options available. We can look at market borrowings; we have some stocks we can sell," Sarraf said at a media conference.

Sarraf further stated that the of and the both are working towards it.

"Today, we had an annual general meeting of the shareholders and we have taken their approval that we can at least borrow Rs 25,000 crore from the market. We have about Rs 10,000 crore of ready cash, and we will see further whether we need to dispose of the shares or not," he said.

Sarraf also asserted that the would become an integrated and gas company.

The chairman also said that the evaluation of such is high.

"So with the same profit, we will be valued higher by the market and our profits, in any case, will increase because of this energy," he had said.

According to reports, the ONGC owns 14 per cent stake in the Indian Corporation (IOC) and a 5 per cent stake in the (India).

Sarraf had said that the would remain a separate-listed entity even after the completion of the acquisition, but will become a subsidiary of the ONGC.

First Published: Thu, September 28 2017. 07:59 IST