Shares of Oil and Natural Gas Corporation (ONGC) rose by nearly 3% today after the Cabinet approved sale of the government’s stake in oil refiner, Hindustan Petroleum Corporation Ltd (HPCL) to India’s largest oil producer ONGC.
Defying its sluggish opening, the ONGC stock gained 2.91% to ₹167.80 on the BSE. On the NSE, the scrip went up by 2.97% to ₹167.85. The stock was the biggest gainer on the benchmark Sensex and the Nifty. Shares of HPCL, however, fell by 5% to ₹364.75.
The Cabinet yesterday approved sale of the government’s 51.11% stake in oil refiner HPCL to India’s largest oil producer ONGC for a potential ₹26,000-30,000 crore, a top source said.
The source said the Cabinet headed by Prime Minister Narendra Modi gave in-principle approval to ONGC to buy HPCL.
ONGC, the source added, will not have to make an open offer to minority shareholders of HPCL as the government’s holding is being transferred to another state-run firm and the ownership is not changing. The deal will be completed within a year, he said.
