Imperial Energy Ltd (IEL), an overseas arm of state-run Oil and Natural Gas Corporation (ONGC), is set to merge five step-down subsidiaries into itself, a regulatory filing said on February 19.
Shareholders of IEL have accorded "approval for merger of five companies" -- Imperial Energy Cyprus Limited (IECL), Imperial Energy Nord Limited (IENL), Redcliffe Holdings Limited (RHL), Biancus Holding Limited (BHL) and San Agio Investment Limited (SAIL) -- with IEL, which is the absorbing company, the exchange filing noted.
The approval was granted on February 19, and is subject to approval of the court of Cyprus, where IEL and its step-down subsidiaries are registered.
Notably, IEL is the wholly-owned subsidiary of ONGC Videsh Ltd (OVL), which manages the overseas business of the New Delhi-headquartered ONGC.
Two other step-down subsidiaries of IEL - Imperal Frac Servics Cyprus Limited (IFSCL) and Imperial Energy Tomsk Limited (IETL) - would not be absorbed into it as part of the merger process.
The disclosure related to the merger of step-down subsidiaries was made by ONGC a week after it reported a drop in its bottomline for the quarter ended December 2023. The company's net profit came in at Rs 10,356 crore, lower by 9.9 percent as compared to Rs 11,489 crore in the year-ago period.
The revenue from operations declined by 2.2 percent on-year, as it came in at Rs 1,65,569 crore, as against Rs Rs 1,69,213 crore in the October-December period of FY23.
In the trading session on February 19, the shares of ONGC edged in the green. The scrip settled at Rs 274.70 apiece on the BSE, higher by 0.73 percent as against the previous day's close.
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