Graphic by Subrata Jana/MintThe Oil and Natural Gas Corp. Ltd (ONGC) and Hindustan Petroleum Corp. Ltd (HPCL) deal has left the government with a big smirk on its face. ONGC has the option of monetizing its stakes in Indian Oil Corp. Ltd (IOCL) or Gail (India) Ltd. On a standalone basis, the deal is expected to turn its net cash balance sheet into net debt one. This column wrote earlier that for integrated oil companies, a lot depends on oil price levels and how best companies are able to hedge against price movements. With the deal price at a lower than expected premium, some of those worries are likely to recede.

Source: Mint January 22, 2018 01:52 UTC