HPCL to raise Rs 10,000 crore via debt

The company will raise Rs 10,000 crore debt via non-convertible debentures, bonds or notes.

The board of Hindustan Petroleum Corporation (HPCL) at its meeting held on 15 December 2022 approved a proposal for borrowing through further issuance of secured/unsecured redeemable non-convertible debentures/bonds/notes, etc. upto Rs 10,000 crore on private placement basis in the domestic market and/or in the overseas market from the date of such approval, the company said on Thursday.

In a stock exchange filing, HPCL said the borrowing was within the overall borrowing powers of the company.

In a separate announcement, HPCL said that it issued unsecured, redeemable, non-convertible, non-cumulative, taxable debentures of Rs 10 lakh each, aggregating to Rs 750 crore on private placement basis on 15 December 2022, for funding of refinancing of existing borrowings and/or funding of capital expenditure of the issuer, including recoupment of expenditure already incurred and/or for any other purpose in the ordinary course of business of the issuer.

The date of allotment of the issue is 15 December 2022 and the date is maturity is fixed as of 15 April 2033. The coupon/interest offered against the issue is 7.54% p.a.

HPCL is engaged in the business of refining of crude oil and marketing of petroleum products. It operates through two segments: downstream, and exploration and production of hydrocarbons. ONGC holds 54.90% in HPCL.

HPCL reported a standalone net loss of Rs 2,172.14 crore in Q2 FY23 as against a net profit of Rs 1,923.51 crore in Q2 FY22. Net sales (excluding Excise Duty) jumped by 30.5% to Rs 1,08,056.24 crore in Q2 FY23 from Rs 82,774.69 crore posted in the same period last year.

Shares of HPCL rose 1.59% to Rs 246.60 on Thursday, 15 December 2022.

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