HPCL stock falls 5 percent amid buzz of likely acquisition by ONGC

 BT Online        Last Updated: February 28, 2017  | 16:31 IST
HPCL stock falls 5 percent amid buzz of likely acquisition by ONGC

The HPCL stock closed lower on Tuesday amid reports that state-run Oil and Natural Gas Corp will take control of Hindustan Petroleum Corp as part of the government's plan to create an integrated public sector oil entity.

The stock which opened at Rs 561.05 level, fell to an intra-day  low of 531.20 level before settling at Rs 537.80, a loss of 3.91 percent or 22 points on the BSE. The stock fell up to five percent during the day's trade.

The move will stop short of a complete merger, which may take longer, but the purpose will be served with this step, the report said citing the same people.

India has about a dozen state-run oil and gas companies - including Indian Oil Corp, Oil and Natural Gas Corp, Hindustan Petroleum Corp. But alone they do not have the financial power to rival global oil majors in bids for overseas oil assets.

The government plans to create a giant oil company by combining state-owned firms, finance minister Arun Jaitley said in the budget speech earlier this month as the world's third largest oil consumer looks to better compete with global majors in acquiring foreign assets.

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