HPCL digs in heels, says acting as per statute in not recognising ONGC as promoter

Virtually rejecting ONGC's demand, Hindustan Petroleum Corp Ltd (HPCL) has said it is acting as per its understanding of the statute in not recognising the new majority shareholder as its promoter.

"Whatever we are doing, whatever we have done and whatever we will be doing will be as per our understanding of the statute and the guidelines and Companies Act and the SEBI guidelines...

"Beyond that who is interpreting whatever, it is his understanding of the situation. We need not subscribe to that," HPCL Chairman and Managing Director Mukesh Kumar Surana told reporters here.

He was asked about ONGC seeking recognition as the promoter of the company post-acquisition of majority stake in HPCL.

Oil and Natural Gas Corp (ONGC) had in January this year bought the government's entire 51.11 per cent stake in HPCL for Rs 36,915 crore. Post that, HPCL had become a subsidiary of ONGC.

But HPCL in its regulatory filing to the stock exchanges, the latest being on July 12, still lists 'President of India' as the promoter with 'zero' per cent shareholding. ONGC, on the other hand, is listed under 'Public Shareholder'.

ONGC has written to HPCL management asking it to take steps to rectify the filings to reflect the true promoter of the company.

Asked about ONGC's request, Surana said, "Everybody is free to express their views... Our actions will be guided by what we think is right."