Oil India shares were trading 4% higher on Friday after the company-led consortium with Engineers India Ltd (EIL) decided to bid for acquiring 61.65% stake of Bharat Petroleum Corporation Ltd's (BPCL) in Numaligarh Refinery Ltd (NRL).
As per the press release, the bid is to be submitted through a formal process.
"The exact percentage of the stake of OIL and ElL will depend on the extent of the right of first offer (ROFO) to be exercised by the Assam Government, that already holds 12.35% stake in NRL," the filing said.
Oil India shares opened with a gain of 2.55% today at Rs 124.90 against the last close of Rs 121.80. Later, the stock touched an intraday high of Rs 126.8, rising 4.11% on BSE.
Oil India is trading higher than 5, 20, 50, 100 and 200-day moving averages.
The stock has risen 7.65% in the last 5 days. The stock has risen 7.48% in one week, 6.88% in one month and 15% since the beginning of the year. However, the stock fell 10% in one year.
M-cap stock stood at Rs 13,484.58 crore today.
"OIL said Numaligarh Refinery was the largest customer of the crude (oil) produced from its North Eastern fields. The acquisition is expected to improve the synergy in OIL's portfolio," it added.