31st January 2025
As one of India’s largest Public Sector Undertakings (PSUs), the Oil and Natural Gas Corporation (ONGC) has long been a dependable asset for investors. This state-owned giant has played a crucial role in India’s development since independence, consistently rewarding its shareholders with substantial dividends. This piece will explore ONGC’s journey to becoming one of the nation’s most profitable PSUs. We’ll delve into a hypothetical investment scenario to illustrate how a modest investment in ONGC during the 1980s could yield significant returns today. Additionally, we’ll examine the IEPF claim and the process of recovering old and ONGC unclaimed shares transferred to IEPF (Investor Education and Protection Fund).
About ONGC
Oil & Natural Gas Corporation Ltd (ONGC) is India’s leading oil and gas producer. It contributes nearly 70% of the country’s crude oil and natural gas. Established in 1956, ONGC holds the prestigious Maharatna PSU status. The company plays a vital role in maintaining India’s energy security.
Over the years, ONGC has shown strong financial and operational performance. It has consistently rewarded shareholders through dividends and bonus share issues. ONGC is listed on both BSE and NSE and remains one of India’s most trusted and actively traded stocks.
The History and Evolution of the Oil and Natural Gas Corporation
The Oil and Natural Gas Corporation (ONGC) is a state-owned entity specializing in oil and In 1956, the Ministry of Natural Resources and Scientific Research, Government of India, established the Oil and Natural Gas Commission (Commission) to advance oil and natural gas exploration and mining efforts in the country. By October 1959, the Commission evolved into a statutory body under the Oil and Natural Gas Commission Act, of 1959, with a mandate to plan, promote, organize, and execute programs for resource development, production, and sale of petroleum products.
The company, Oil and Natural Gas Corporation Limited was incorporated under the Companies Act on June 23, 1993, receiving the certificate of commencement on August 10, 1993. With the enactment of the Oil and Natural Gas Commission Act (Transfer of Undertaking and Repeal) Act, 1993, all assets, liabilities, and obligations of the Commission were transferred to the company on February 1, 1994.
Source: [https://www.moneycontrol.com/company-facts/oilnaturalgascorporation/history/ONG:~:text=1956 -Oil and Natural Gas,economic growth of the country.](https://www.moneycontrol.com/company-facts/oilnaturalgascorporation/history/ONG:~:text=1956 -Oil and Natural Gas,economic growth of the country.)
Oil and Natural Gas Corporation (ONGC), a prominent public sector enterprise in India, has had a significant presence in the stock market. Listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE), ONGC is a key constituent of the BSE SENSEX and the S&P CNX Nifty indices, reflecting its influence in the Indian market. In 1996, ONGC issued 3,428,537,716 shares to the President of India, strengthening the government’s stake in the company. Additionally, 1,076,440,366 equity shares were issued as bonus shares, demonstrating the company’s robust financial health and its commitment to rewarding shareholders. However, 6,639,910 equity shares were delisted during this period. As of March 31, 2013, the Government of India held a substantial 69% equity stake in ONGC, underscoring its strategic importance. Over 480,000 individual shareholders collectively owned around 1.65% of its shares, with the Life Insurance Corporation of India (LIC) emerging as the largest non-promoter shareholder, holding a 7.75% stake. This extensive shareholding structure highlights the widespread trust and confidence in ONGC’s performance and potential.
Source: https://en.wikipedia.org/wiki/Oil_and_Natural_Gas_Corporation#Listings_and_shareholding
Here is a quick overview of ONGC transformation for each of these decades:
Year | Event |
1956 | ONGC was established by the Government of India on August 14. |
1959 | Discovery of oil in Gujarat at Ankleshwar. |
1960 | The first offshore drilling rig, Sagar Samrat, was commissioned. |
1970 | Discovery of the Bombay High field. |
1974 | Commercial production commenced in Bombay High. |
1976 | Significant discovery in the Krishna-Godavari basin. |
1980 | Expanded operations to include natural gas production. |
1984 | Conferred the status of a Schedule ‘A’ Public Sector Undertaking. |
1989 | ONGC Videsh Limited (OVL) was established. |
1994 | Converted into a public limited company. |
1997 | Achieved the status of a Navratna company. |
2001 | Received Maharatna status. Strategic alliance with Reliance Industries Ltd. |
2002 | OVL acquired a 20% stake in Sakhalin-1, Russia. Launched Project ICE. |
2003 | Approved an open offer for a 20% additional stake in MRPL. Strategic alliance with IOC. |
2004 | Acquired 74% stake in MRPL. Signed MoU with MRPL for long-term crude supply. |
2005 | OVL acquired 30% in the Greater Nile Oil Project, Sudan. Gas was discovered in the KG basin. Bonus shares issued. Alliance with GAIL. |
2006 | Celebrated the golden jubilee. Commissioned the first deepwater well in the Krishna-Godavari. |
2007 | Gas production crossed 25 billion cubic meters. Won Golden Peacock Award. |
2008 | OVL acquired Imperial Energy, UK, for $2.1 billion. Crude oil production > 25 million tonnes. |
2009 | MoU with Gujarat State Petroleum Corp. for joint exploration. Won Platts Global Energy Award. |
2010 | Revenue crossed $20 billion. Discovery in Colombia by OVL. |
2011 | Became the first Indian company to produce 1 million+ barrels/day of oil equivalent. |
2012 | Strategic partnership with ConocoPhillips. Won Dun & Bradstreet Award. |
2013 | Discoveries in KG and Cauvery basin. Acquired stake in ACG oil field, Azerbaijan. |
2014 | Gas production hit 26 billion cubic meters. Acquired 10% stake in Mozambique Rovuma Area 1. |
2015 | Commissioned a solar project in Gujarat. Acquired 15% stake in Vankor field, Russia. |
2016 | Revenue crossed $25 billion. Won Golden Peacock Award for Excellence. |
2017 | OVL acquired a 10% stake in the UAE’s Lower Zakum concession. Crude production > 30 million tonnes. |
2018 | Acquired 51.11% controlling stake in HPCL. Oil discovery in the Gulf of Kutch. |
2019 | Partnership with ExxonMobil for offshore. 10% stake in ADNOC’s offshore concession. |
2020 | Revenue crossed $30 billion. Launched a carbon emission reduction drive. |
2021 | Celebrated 65th anniversary. Discovered significant gas reserves in KG-DWN-98/2. |
2022 | Crude production hit 35 million tonnes. Acquired 25% stake in Brazil offshore oil field. |
2023 | Revenue crossed $35 billion. Launched a net-zero carbon initiative. Discovered oil in the Krishna-Godavari basin. |
ONGC Share Price Advanced Chart:
Impact of the Oil and Natural Gas Corporation
ONGC has fueled India’s journey to energy independence. It explores and produces oil and gas locally, cutting reliance on imports. Over the years, ONGC has generated jobs for lakhs of people. It boosts government revenue through taxes and consistent dividends. Investors have benefitted from ONGC’s financial strength, though some may have missed their ONGC unclaimed dividend. Now, ONGC is also branching into renewable energy for a cleaner tomorrow. It’s not just a company, it’s a pillar of nation-building.
Bonus History:
Source: https://www.moneycontrol.com/company-facts/oilnaturalgascorporation/bonus/ONG
Split History:
Source: https://www.moneycontrol.com/company-facts/oilnaturalgascorporation/splits/ONG
Calculations On ONGC Shares
Suppose your grandfather bought 500 shares of Oil and Natural Gas Corporation (ONGC) in April 1990.
Bonus in 2006 (1:2 Ratio):
For every 2 shares owned, the company gave 1 additional share.
Original number of shares: 500
Additional shares: 500 / 2 = 250
Total shares after the bonus: 500 + 250 = 750
Bonus in 2010-11 (1:1 Ratio):
For every share owned, the company gave 1 additional share.
Original number of shares: 750
Additional shares: 750
Total shares after the bonus: 750 + 750 = 1500
Stock Split in 2010-11 (1:2 Ratio):
Each share of Rs. 10 was split into 2 shares of Rs. 5.
Original number of shares: 1500
Total shares after the stock split: 1500 * 2 = 3000
Bonus in 2016 (1:2 Ratio):
For every 2 shares owned, the company gave 1 additional share.
Original number of shares: 3000
Additional shares: 3000 / 2 = 1500
Total shares after the bonus: 3000 + 1500 = 4500
Value of Shares in July 2024:
Number of shares: 4500
Current share price: Rs. 274.75
Total value of shares: 4500 * 274.75 = Rs. 12,363,750
So, your grandparents’ initial investment of 500 shares has grown to 4500 shares, worth Rs. 12,363,750 in July 2024. This demonstrates a significant increase in value over the past 34 years. If we also consider the dividends received during this period, the total return on investment would be even higher.
Thus, an initial investment in ONGC shares would have grown tremendously, showcasing the company’s strong performance and growth in the petroleum sector, both domestically and internationally.
Dividend Summary
For the year ending March 2024, Oil and Natural Gas Corporation (ONGC) has declared an equity dividend of 245.00%, amounting to Rs 12.25 per share. With the current share price at Rs 276.30, this results in a dividend yield of 4.43%.
ONGC has a strong track record of dividend payments, consistently declaring dividends for the past five years.
Source: https://www.moneycontrol.com/company-facts/oilnaturalgascorporation/dividends/ONG
Why Have Your Unclaimed ONGC Shares Gone to IEPF?
Your ONGC shares or dividends may have been moved to the IEPF account for several reasons, such as:
– Dividend payouts remained unclaimed continuously for seven consecutive years.
– The shareholder changed their address but did not update the same with the company or registrar.
– Physical share certificates were misplaced, damaged, or never recovered.
– The original shareholder passed away, and the legal heirs were unaware of the investment.
As per regulations, once these conditions are met, ONGC is legally required to transfer the related shares and unpaid dividends to the IEPF.
How to Know About ONGC Unclaimed Dividends & Shares?
If you want to check whether your shares or ONGC unclaimed dividend have been transferred to the IEPF, follow these steps:
– Go to the official IEPF website.
– Choose the option “Search Unclaimed/Unpaid Amount.”
– Enter key details such as the investor’s name, father’s or husband’s name, or the Folio Number.
– Review the results to verify if any record of your ONGC holdings or dividends exists.
If the search does not display any records, you can reach out to ONGC’s Registrar or the IEPF Nodal Officer for additional guidance. This ensures you can track and recover your ONGC unclaimed dividend or shares effectively.
Formation of the Investor Education and Protection Fund (IEPF)
The Central Government established the Investor Education and Protection Fund (IEPF) in 2016 to tackle the growing problem of dormant and unclaimed shares. Historically, shares were often purchased at low prices and subsequently overlooked by shareholders, particularly when these shares showed minimal growth over five or ten years. However, as time passed and these shares appreciated significantly, shareholders would return to claim their dividends.
Before the IEPF’s creation, there was no standardized mechanism to manage such scenarios. Companies faced challenges in verifying ownership and calculating dividends for dormant funds after many years. Some companies would transfer unclaimed dividends to the government’s public welfare account, leaving no funds for returning investors. Others retained the dividends for years, utilizing the money for their own benefit while claiming they were waiting for shareholders to reclaim their dividends.
This lack of regulation led to the accumulation of black money. Companies often kept the unclaimed funds without detailed accounting, simply labeling them as dormant funds with no known claimants. To address these issues and bring transparency, the government established the IEPF Authority. This statutory body was tasked with enforcing regulatory norms for dormant funds and unclaimed dividends.
The IEPF Authority employed fund managers to handle claims related to unclaimed funds and framed rules for the transfer of dormant funds and unclaimed dividends. This initiative aimed to regularize the management of these funds and protect investors’ interests.
IEPF Authority Rules on Dormant Funds
The IEPF Authority frequently updates its regulations concerning unclaimed dividends held by listed companies. According to the current rules, companies are required to publish a list of unclaimed dividends along with investor details on their websites every fiscal year. This practice ensures transparency in disclosing data related to unclaimed dividends.
Additionally, the IEPF mandates that companies appoint a Nodal Officer responsible for addressing and resolving complaints related to IEPF unclaimed shares and dividends. The Nodal Officer also manages the company’s special unclaimed dividend account, which is a compulsory account under IEPF regulations. This account holds unclaimed dividends for seven years, starting 30 days after the dividends are declared. After these seven years, any remaining unclaimed shares are transferred to the IEPF.
The Nodal Officer must also send a verification report to the IEPF fund manager. This report, accompanied by other required documents, must be submitted within 15 days of receiving a claim application from the claimant. Failure to comply with these regulations can result in enforcement actions from the IEPF Authority.
Moreover, companies are required to inform the IEPF of any changes to the positions of the Nodal Officer or Deputy Nodal Officer to ensure continuous compliance with the regulations.
The Necessity of Legal Help to Claim ONGC’s Shares
In earlier sections, we examined how a modest investment in ONGC shares could grow significantly over time. We also reviewed the company’s annual reports to trace past dividend transfers to the IEPF and the yearly dividends paid to stockholders. Now, let’s explore the process of claiming unclaimed shares from the IEPF and understand why legal assistance can be crucial.
If you have unclaimed ONGC dividends that have not exceeded seven years, you can inquire about the status of these funds through the company’s nodal officer. Investors can search for their share details and contact ONGC’s appointed agent and registrar with proof of share ownership and relevant documents.
The nodal officer maintains comprehensive records of shares owned by investors, allowing even long-term shareholders to inquire about the status of their holdings. For shares dormant for more than seven years, the process involves the IEPF authority. Here’s a step-by-step guide to the IEPF claim process:
Submission to Nodal Officer
After completing the IEPF-5 form and gathering all necessary documents, submit them to ONGC’s Nodal Officer at their registered office:iepf.gov.in+2iepfzone.com+2economictimes.indiatimes.com+2
Verification by Nodal Officer
Upon receiving your application, the Nodal Officer will verify the submitted documents and prepare a verification report. This report is then forwarded to the IEPF Authority within 15 days of receipt. The IEPF Authority will examine the claim and, if all criteria are met, initiate the transfer of shares and/or dividends to the claimant’s demat account or bank account. The entire process may take several months, depending on the complexity of the claim and the completeness of the documentation.
Conclusion
Recovering ONGC unclaimed shares and dividends from the IEPF can be complex due to stringent documentation and continuous communication requirements. This is where Crystal Peak Wealth, a trusted financial and legal consultancy, proves invaluable. With 20+ years of average professional experience and over ₹402 Cr+ worth of physical shares successfully dematerialized, we guide investors through the claim process, liaising with nodal officers and the IEPF to ensure accuracy, compliance, and efficiency.
Given ONGC’s consistent growth, international collaborations, and strong dividends, reclaiming old unclaimed shares can be highly profitable. By engaging a reputable consultancy like Crystal Peak Wealth, investors save time and effort while unlocking significant capital from shares passed down from previous generations.
FAQ’s
You can visit the IEPF website and use the search feature by entering your name, folio number, or DP-ID. The database will show whether your ONGC shares or dividends have been transferred.
You’ll need a filled IEPF Form-5, identity proof (like Aadhaar), original share certificates (if physical), bank proof, and an indemnity bond. Legal heir documents may be required if the original shareholder is deceased.
Once the nodal officer verifies your documents, the IEPF typically processes claims within 60 days. However, the full refund process, including documentation and approvals, can take between 8 to 12 months on average.
Yes, legal heirs can claim ONGC shares from the IEPF by providing a succession certificate, legal heir certificate, or probate of will, along with the required IEPF documents and identification proofs.
The IEPF claim process is complex and time-consuming. Crystal Peak Wealth offers expert guidance, handles documentation, liaises with nodal officers, and increases your chances of a smooth, successful recovery of ONGC shares and dividends.
ONGC unclaimed dividend and shares are investments left unclaimed for over seven years. This can happen due to lost certificates, address changes, or death of the shareholder. These unclaimed assets are transferred to the IEPF for safekeeping until the rightful owner claims them.
You can check for any ONGC unclaimed dividend or shares on the IEPF website. Simply enter your name, folio number, or DP-ID in the search tool. If your details show up, it means your ONGC unclaimed dividend or shares are with the IEPF and available for recovery.
The original shareholder, their nominee, or legal heir can claim the ONGC unclaimed dividend and shares. If the shareholder has passed away, legal heirs must provide documents like a succession certificate. This ensures only rightful claimants recover ONGC unclaimed dividend and shares from the fund.
Download and fill the IEPF‑5 form from the MCA website to claim your ONGC unclaimed dividend and shares. Attach all necessary documents and submit online. You’ll receive an SRN, which you use to track your claim. Print and send the form to ONGC’s nodal officer for processing.
There is no fixed deadline for claiming your ONGC unclaimed dividend or shares from IEPF. These shares stay with the fund until claimed. But it’s wise to act quickly to avoid issues with missing documents or changes in rules that could delay your claim.
Typically, it takes two to six months to get your ONGC unclaimed dividend or shares back after submitting a claim. The time depends on verification by ONGC and IEPF. Once approved, shares are credited to your Demat account, and dividends are transferred to your bank.