ONGC shares climb 3%; Here's what is driving this Maharatna's stock?

ONGC shares shine: Shares of the state-run Maharatna company, Oil and Natural Gas Corporation (ONGC), climbed 3 per cent to Rs 328.85 on the BSE during intraday deals on Monday. 

At around 01:30 pm on Monday, ONGC shares were quoted at Rs 328.25, up 2.87 per cent from their previous close of Rs 319.10. ONGC shares are merely Rs 16 shy of their 52-week high of Rs 344.60, touched on August 1 this year on the BSE. 

The northward move in the company's stock price came on the back of news that the Government of India and the company's board have approved the proposal for payment of balance call money on share warrants, resulting in the issue of additional shares by OPaL.

 

"Accordingly, the company paid balance call money of Rs 86.281 crore (@ Re 0.25 per warrant) and the said warrants have been converted into equity shares. This issue of additional equity shares has made OPaL a 'Government Company' and also a 'Subsidiary' of the Company," ONGC said in an exchange filing on the BSE.

In another regulatory filing, the ONGC also informed the exchanges that it has started production at its fifth oil well in the Block KG-DWN-98/2 Cluster-2 asset.

ONGC, the largest oil and natural gas company in India, contributes about 71 per cent of the country's domestic production. The company also explores, develops, and produces crude oil and natural gas in other parts of the world.

The Maharatna company boasts a market capitalisation of Rs 4,12,633.16 crore on the BSE as of August 26, 2024. The oil explorer is a constituent of the BSE 100 index.

BSE analytics reflect that ONGC shares have outperformed the benchmark S&P BSE Sensex with a rally of 59.76 per cent year-to-date, against the latter's 13.10 per cent.

The Maharatna company's shares have yielded a return of 21.58 per cent in the last three months and 87.64 per cent in the last year.

ONGC shares have offered a multibagger return in the last two years, with a rally of 139.96 per cent during the period, according to BSE analytics.

ONGC shares have a 52-week range of Rs 344.60 - 172.95 on the BSE.