HPCL merger: MRPL faces minimum 25% public shareholding norms test

MRPL has time till August 21 to meet minimum public shareholding norms; merger process could take much longer

Oil and Natural Gas Corporation (ONGC) is looking to merge its subsidiaries, Mangalore Refineries and Petrochemicals (MRPL) and Hindustan Petroleum Corporation Ltd (HPCL), with itself. However, there is the issue with MRPL regarding the regulatory norms on minimum public shareholding.

The Mangalore refiner is yet to meet the market regulator Sebi guidelines of meeting the minimum 25 per cent public shareholding norm by August 21 this year. The government of India holds 88.58 per cent stake in MRPL through ONGC and HPCL, while public stakes are as low as 11.42 per cent.Hence, ONGC and HPCL are facing the tough question