ONGC increases stake in Mangalore SEZ from 26% to 49%

Through a regulatory filing, India's state-owned Oil and Natural Gas Corporation has informed that it has bought 1,15,20,000 shares of Mangalore SEZ Limited for Rs 40.32 crore.

With this acquisition, ONGC has increased its stake in the firm from 23 per cent to 49 per cent.

IL&FS, has offered its equity stake in MSEZ to ONGC, as a Right to First Refusal, in terms of Share Holders’ Agreement. Increase in control/ stake in MSEZ would benefit ONGC and MRPL, a subsidiary of ONGC.

MSEZ

MSEZ is a Multi-product SEZ and its main business is leasing of the land to the Industries and providing utility services such as water supply, power supply, Lease rental, Zone Maintenance, CETP, Marine outfall and pipe line corridor.

MZEZ is a special purpose vehicle incorporated on 24th February, 2006. It is a Joint Venture of ONGC (26%), IL&FS (50%), Karnataka Industrial Area Development Board (KIADB) (23%), Mangalore Refinery and Petrochemicals Ltd (0.96%) and Kanara Chamber of Commerce & Industry (KCCI) (0.04%).

The Zone is spread over an area of 1,607 acres and the Zone is operational from 2014 with around 85% area leased out. The Zone has 10 operational units such as MRPL (Aromatic Complex), Syngene, ISPRL, JBF Petro, Catsynth speciality chemicals and other food processing units. MSEZ has emerged as one of the most vibrant operational multi-products SEZs in India. It is one of India’s successful SEZs with investments exceeding USD 2 billion so far and exports of over USD 3.2 billion worth of goods from its units.

Director of exploration

ONGC has also appointed Sushma Rawat, the director for exploration, as a key managerial personnel of the firm.