ONGC maiden debt-raising up 40% to fund HPCL buy

State-owned Oil and Natural Gas Corporation (ONGC) has increased its first ever debt-raising plans by 40%, to as much as Rs 35,000 crore, to fund its Rs 36,915-crore acquisition of Hindustan Petroleum (HPCL).

The acquisition would create India's first integrated oil company. This would be ONGC's biggest acquisition and second buyout this fiscal after its Rs 7,738 crore acquisition of 80% stake in Gujarat State Petroleum Corporation's KG Basin gas block.

ONGC Chairman and Managing Director Shashi Shanker said the two deals would not affect the company's overseas acquisition plans as "with a consolidated balance sheet (of ONGC and HPCL), we would be better equipped to take higher risks and eye better assets".