New Delhi: State-run ONGC has increased its stake in Mangalore SEZ Ltd (MSEZ) from 26 percent to 49 percent by purchasing 1,15,20,000 equity shares from IL&FS. In a regulatory filing to the stock exchanges on Saturday, ONGC said that its board of directors has approved the “acquisition of 1,15,20,000 equity shares of Mangalore SEZ Ltd (MSEZ) from IL&FS. After this acquisition, equity stake of the Company shall increase from 26 percent to 49 percent in MSEZ.”
ONGC has acquired the additional 23 percent stake at a cost of Rs 40.32 crore. “Price of shares has been determined as per provisions of Share Holders’ Agreement,” said ONGC.
ONGC told the bourses that the increase in control/stake in MSEZ would benefit ONGC and its subsidiary MRPL. “IL&FS has offered its equity stake in MSEZ to ONGC, as a Right to First Refusal in terms of Share Holders’ Agreement,” said the regulatory filing.
MSEZ is a special purpose vehicle (SPV) incorporated on February 24, 2006. It is a joint venture of ONGC, IL&FS, Karnataka Industrial Area Development Board (KIADB), Mangalore Refinery and Petrochemicals Ltd (MRPL) and Kanara Chamber of Commerce & Industry (KCCI). IL&FS held 50 percent of the shares before the stake sale. And KIADB holds 23 percent, MRPL 0.96 percent and KCCI 0.04 percent.
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 pipeline corridor. In 2021-22, its turnover was Rs 198.99 crore.
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