NEW DELHI: State-owned Oil and Natural Gas Corp (ONGC) today stated it has purchased govt's whole 51.11 in step with cent stake in oil refiner HPCL for Rs 36,915 crore.
In a regulatory submitting, ONGC stated it purchased 77.88 crore shares in Hindustan Petroleum Corp Ltd (HPCL) for Rs 473.97 in step with proportion.
The acquisition was executed in an off-market deal, it stated.
"The transaction is in furtherance of the Government's objective to combine the various central public enterprises to give them capacity to bear higher risks, avail economies of scale, take higher investment decisions and create more value for the stakeholders and create an oil major which is able to match the performance of international and domestic private oil and gas companies," it stated.
The worth paid is upper than Rs 396.50 last worth of HPCL on the BSE.
The transaction will assist the government go its annual sell-off (disinvestment) target for the first ever time.
ONGC has borrowed cash from a grab of banks to fund the deal.
Through this acquisition, ONGC will turn into India's first vertically integrated 'oil major' company, having presence throughout all the worth chain. The integrated entity could have advantage of having enhanced capability to endure upper risks and take upper funding selections and many others.
In this process, ONGC has acquired vital mid-stream and downstream capability and will reach economies of scale at quite a lot of ranges of operations.
With a turnover of Rs 2,13,489 crore and benefit of Rs 6,502 crore all over 2016-17, HPCL ranks at 384th in Fortune Global 500 and 48th in Platts 250 Global Energy Companies.
HPCL markets round 35.2 million tonnes of petroleum products with a market proportion of about 21 in step with cent and is primary lube marketer in the country. It has refineries in Mumbai and Visakhapatnam and a joint venture refinery at Bhatinda.
It owns the most important Lube refinery in India and the second greatest go country product pipeline community of about three,500 km. HPCL has a limiteless marketing community spread across the duration and breadth of the country with terminals, depots, LPG bottling crops, lube blending crops, aviation fuel stations and round 15,000 petrol pumps.
ONGC is the largest manufacturer of crude oil and natural gasoline in India, contributing round 70 in step with cent of domestic manufacturing.
In a regulatory submitting, ONGC stated it purchased 77.88 crore shares in Hindustan Petroleum Corp Ltd (HPCL) for Rs 473.97 in step with proportion.
The acquisition was executed in an off-market deal, it stated.
"The transaction is in furtherance of the Government's objective to combine the various central public enterprises to give them capacity to bear higher risks, avail economies of scale, take higher investment decisions and create more value for the stakeholders and create an oil major which is able to match the performance of international and domestic private oil and gas companies," it stated.
The worth paid is upper than Rs 396.50 last worth of HPCL on the BSE.
The transaction will assist the government go its annual sell-off (disinvestment) target for the first ever time.
ONGC has borrowed cash from a grab of banks to fund the deal.
Through this acquisition, ONGC will turn into India's first vertically integrated 'oil major' company, having presence throughout all the worth chain. The integrated entity could have advantage of having enhanced capability to endure upper risks and take upper funding selections and many others.
In this process, ONGC has acquired vital mid-stream and downstream capability and will reach economies of scale at quite a lot of ranges of operations.
With a turnover of Rs 2,13,489 crore and benefit of Rs 6,502 crore all over 2016-17, HPCL ranks at 384th in Fortune Global 500 and 48th in Platts 250 Global Energy Companies.
HPCL markets round 35.2 million tonnes of petroleum products with a market proportion of about 21 in step with cent and is primary lube marketer in the country. It has refineries in Mumbai and Visakhapatnam and a joint venture refinery at Bhatinda.
It owns the most important Lube refinery in India and the second greatest go country product pipeline community of about three,500 km. HPCL has a limiteless marketing community spread across the duration and breadth of the country with terminals, depots, LPG bottling crops, lube blending crops, aviation fuel stations and round 15,000 petrol pumps.
ONGC is the largest manufacturer of crude oil and natural gasoline in India, contributing round 70 in step with cent of domestic manufacturing.
ONGC buys govt's entire 51.11% stake in HPCL for Rs 36,915 cr
![ONGC buys govt's entire 51.11% stake in HPCL for Rs 36,915 cr]()
Reviewed by Kailash
on
January 31, 2018
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