ONGC gets energized after board approves acquisition of HPCL

ONGC rose 0.83% to Rs 158.85 at 10:15 IST on BSE after the company said that its board of directors approved the proposal for acquisition of 51.11% of shares of HPCL from the Government of India.

The announcement was made after market hours yesterday, 21 August 2017.

Meanwhile, the S&P BSE Sensex was down 6.24 points or 0.02% at 31,252.61.

On the BSE, 1.07 lakh shares were traded on the counter so far as against the average daily volumes of 8.84 lakh shares in the past one quarter. The stock had hit a high of Rs 159 and a low of Rs 157.60 so far during the day. The stock had hit a 52-week high of Rs 212 on 31 January 2017 and a 52-week low of Rs 155.30 on 27 June 2017.

 

The stock had underperformed the market over the past one month till 21 August 2017, falling 4.25% compared with 2.4% decline in the Sensex. The scrip had also underperformed the market in past one quarter, declining 12.47% as against Sensex's 2.61% rise. The scrip had also underperformed the market in past one year, dropping 2.32% as against Sensex's 11.33% rise.

The large-cap company has equity capital of Rs 6416.62 crore. Face value per share is Rs 5.

ONGC said that the company's board of directors considered the proposal for acquisition of 51.11% of share of HPCL from the Government of India and given the 'in principle approval' for the same. Further, the board has constituted a Committee of Directors to examine various aspects of the proposal and to provide its recommendations to the board of directors.

The government of India held 51.11% stake in HPCL as per the shareholding pattern as on 30 June 2017.

Shares of HPCL rose 3.19% to Rs 448.

ONGC's net profit fell 8.2% to Rs 3884.73 crore on 7.2% increase in net sales to Rs 19073.54 crore in Q1 June 2017 over Q1 June 2016.

ONGC is India's largest oil and gas exploration firm by sales. The Government of India held 68.07% stake in ONGC as per the shareholding pattern as on 30 June 2017.

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