HPCL gains after RBI nod for hike in foreign investment limit

HPCL rose 2.38% to Rs 1,287 at 10:44 IST on BSE after the Reserve Bank of India allowed foreign investors to enhance investment in the company from the existing 24% to 40%.

Meanwhile, the BSE Sensex was up 79.36 points, or 0.28%, to 28,157.71.

On BSE, so far 69,000 shares were traded in the counter, compared with average daily volume of 1.45 lakh shares in the past one quarter. The stock hit a high of Rs 1,298.90 so far during the day, which is also a record high for the counter. The stock hit a low of Rs 1,270.90 so far during the day. The stock hit a 52-week low of Rs 636 on 25 February 2016. The stock had outperformed the market over the past 30 days till 5 August 2016, rising 21.71% compared with 3.22% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 49.52% as against Sensex's 11.30% rise.

The large-cap company has an equity capital of Rs 338.63 crore. Face value per share is Rs 10.

The Reserve Bank of India (RBI) notified on Friday, 5 August 2016, that foreign institutional investors (FIIs)/registered foreign portfolios investors (RFPIs) from default can now invest from existing 24% up to 40% of the paid up capital of HPCL under the Portfolio Investment Scheme (PIS). RBI stated that the company has passed resolution at its board of directors' level and a special resolution by the shareholders, agreeing for enhancing the limit for the purchase of its equity shares by FIIs/RFPIs. The purchases could be made through primary market and stock exchanges.

HPCL's net profit drops 28.2% to Rs 1552.94 crore on 5.4% drop in net sales to Rs 42125.96 crore in Q4 March 2016 over Q4 March 2015. The company will announce Q1 results on 22 August 2016.

HPCL is a public sector oil marketing company. The Government of India held 51.11% stake in HPCL as per the shareholding pattern as on 30 June 2016.

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