HPCL assets valued at over 70% of its m-cap

A new report has valued assets of Hindustan Petroleum (HPCL) at Rs 114,000 crore — nearly 70 per cent premium to its current market capitalisation of around Rs 66,000 crore. The higher valuation of HPCL’s assets by JM Financial, if accepted by the government, would mean a higher outgo for ONGC.
 

The JM Financial report has been submitted to the government, which had mandated the Mumbai firm to advise it on the transaction.

ONGC was planning to spend around Rs 33,000 crore to acquire the government’s 51 per cent stake in HPCL, based on the latter’s current market capitalisation. Going by