Largest Crude Oil and Natural Gas Company of India acquires 100 stake in PTC Energy Ltd for Consideration of Rs 925 crore - Do you own it?
With a PE ratio of 7.23x, the company trades at a discount compared to the industry PE of 17.3x. The company has ROCE of 18.4 per cent and ROE of 16.3 per cent.
Oil and Natural Gas Corporation Ltd (ONGC) has made significant strides in the renewable energy sector through its wholly owned subsidiary, ONGC Green Limited (OGL). In a strategic move, ONGC has subscribed to 120 crore equity shares of Rs 10 each in OGL on a rights basis. This investment strengthens ONGC's commitment to expanding its footprint in the renewable energy domain.
Further enhancing its renewable energy portfolio, OGL has acquired a 100 per cent equity stake in PTC Energy Limited (PEL) for a cash consideration of Rs 925 crore, subject to post-closing adjustments. PEL, established in August 2008 as a subsidiary of PTC India Limited, is engaged in the renewable energy business with a focus on wind power. It boasts an operational wind generation capacity of 288.80 MW across seven locations in Andhra Pradesh, Madhya Pradesh, and Karnataka, operating 157 Wind Turbine Generators.
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This acquisition aligns with ONGC's strategic objectives to diversify its energy portfolio and reduce its carbon footprint. OGL aims to achieve a 10 GW renewable energy portfolio for ONGC by 2030, with a net-zero target for Scope 1 and Scope 2 emissions by 2038. The acquisition was completed on 4th March 2025, with no related party transactions involved.
Company Overview
Oil and Natural Gas Corporation Limited (ONGC) is a major player in the Indian energy sector, with a current stock market price of Rs 226.85. The company's market capitalisation stands at Rs 2,83,119 crore. Over the past year, the stock has seen a decline of 18.75 per cent, but it has provided a 37.36 per cent return over a three-year period. ONGC's 52-week high and low prices are Rs 344.55 and Rs 215.2, respectively. ONGC continues to focus on strategic investments to drive growth and sustainability in the energy sector.
With a PE ratio of 7.23x, the company trades at a discount compared to the industry PE of 17.3x. The company has ROCE of 18.4 per cent and ROE of 16.3 per cent. The company has been maintaining a healthy dividend payout of 33.4 per cent.
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Disclaimer: The article is for informational purposes only and not investment advice.