Retail foray green signal lifts MRPL

DALAL STREET SPIKES

The stock of refinery company MRPL gained over 5 per cent in the morning trade to touch the day's high of Rs 60.25, before closing at Rs 58.55 on reports that the government has allowed the company to set up 500 petrol pumps.

Analysts feel this will have a positive impact on the company. The counter witnessed volumes of more than 16 lakh shares at the BSE.

Analyst said the firmness in the stock is mainly on reports that Hindustan Petroleum Corporation will offload its 16.97 per cent stake in MRPL to ONGC at Rs 37.75 per share, by March 31.

The stock of MRPL in seven sessions including the current levels of Rs 60 has now risen 18.3 per cent from Rs 50.70 on February 3.

The decision to sell came after ONGC's acquisition of majority stake in MRPL and its expressed interest in acquiring the HPCL stake as well. Following the acquisition, ONGC's stake in MRPL will rise to 88.5 per cent.