ONGC to acquire govt's entire 51.1% stake in HPCL for Rs 369.15 bn

The decision of ONGC will help the Modi govt surpass its disinvestment target of Rs 725 bn for the current fiscal

State-run Oil and Natural Gas Corporation (ONGC) will acquire the 51.1 per cent government stake in Hindustan Petroleum Corporation (HPCL) at a cost of Rs 369.15 billion.  The deal is expected to be completed by the end of this month.

ONGC will pay the government Rs 473.97 per share, at a premium of over 10 per cent of the 60-days’ weighted average price of HPCL's scrip. The deal will also help the government to surpass the disinvestment target of Rs 725 billion for 2017-18. As of January 11, the total disinvestment proceeds for the current fiscal year stood