HPCL stock falls on Cabinet nod to takeover by ONGC
ONGC will buy government's 51.11 per cent stake in HPCL but will not have to make an open offer as the government's holding is being transferred to another state-run firm and the ownership isn't changing.
- Jul 20, 2017,
- Updated Jul 20, 2017 1:04 PM IST
The Hindustan Petroleum stock fell on Thursday after the Cabinet approved sale of government stake in HPCL to Oil and Natural Gas Corporation (ONGC).
At 1236 hours, the stock was trading 4 percent or 15 points lower at 368 level on the BSE.
The ONGC stock was trading 1.35 percent or 2.20 points higher on the BSE.
ONGC will buy government's 51.11 per cent stake in HPCL but will not have to make an open offer as the government's holding is being transferred to another state-run firm and the ownership isn't changing.
The deal will raise the government's divestment proceeds by about Rs 30,000 crore.
The government aims to raise Rs 72,500 crore ($11.24 billion) through stake sales in various companies.
HPCL will become a subsidiary of ONGC and will remain a listed company post the acquisition, a source said adding the board of the refining and marketing company will continue to remain in place.
Flowing from Finance Minister Arun Jaitley's Budget announcement of creating an integrated oil company, the government plans to divest its entire 51.11 per cent shareholding in India's third-biggest fuel retailer HPCL to oil producer ONGC. As part of the transaction, HPCL may takeover operations of Mangalore Refinery and Petrochemicals Ltd.
The Hindustan Petroleum stock fell on Thursday after the Cabinet approved sale of government stake in HPCL to Oil and Natural Gas Corporation (ONGC).
At 1236 hours, the stock was trading 4 percent or 15 points lower at 368 level on the BSE.
The ONGC stock was trading 1.35 percent or 2.20 points higher on the BSE.
ONGC will buy government's 51.11 per cent stake in HPCL but will not have to make an open offer as the government's holding is being transferred to another state-run firm and the ownership isn't changing.
The deal will raise the government's divestment proceeds by about Rs 30,000 crore.
The government aims to raise Rs 72,500 crore ($11.24 billion) through stake sales in various companies.
HPCL will become a subsidiary of ONGC and will remain a listed company post the acquisition, a source said adding the board of the refining and marketing company will continue to remain in place.
Flowing from Finance Minister Arun Jaitley's Budget announcement of creating an integrated oil company, the government plans to divest its entire 51.11 per cent shareholding in India's third-biggest fuel retailer HPCL to oil producer ONGC. As part of the transaction, HPCL may takeover operations of Mangalore Refinery and Petrochemicals Ltd.