New Delhi: The board of Hindustan Petroleum Corp Ltd (HPCL) on Wednesday accepted a Rs 2,500 crore share buyback plan as the corporate administration feels the share worth is decrease than the worth it deserves.
In a inventory change submitting, HPCL mentioned it is going to buyback upto 10 crore shares for not more than Rs 250 apiece.
The corporate plans to buyback 6.56 per cent of the overall shares.
HPCL, a subsidiary of state-owned Oil and Pure Gasoline Corp (ONGC), has no instant historical past of a share buyback.
Submit buyback, ONGC shareholding within the agency will rise to 54.70 per cent from the present 51.11 per cent. Shareholding of public will fall to 45.30 per cent from 48.89 per cent, the agency mentioned.
HPCL shares settled at Rs 186.75 apiece on BSE, up 0.54 per cent over earlier shut. The speed is a few third of Rs 473.97 per share that ONGC paid in January 2018 to amass the federal government’s 51.11 per cent share in HPCL.
HPCL is the nation’s third-biggest oil retailer after Indian Oil Corp (IOC) and Bharat Petroleum Corp Ltd (BPCL). It owns two refineries ? a 7.5 million tonnes unit in Mumbai and one other 8.3 million tonnes facility at Visakhapatnam in Andhra Pradesh. It additionally owns half of the 11.3 million tonnes Bathinda refinery in Punjab and is a 16.95 per cent proprietor of the 15 million tonnes a yr Mangalore Refinery. It owns and operates 17,171 out of 71,843 petrol pumps within the nation.
Sources mentioned the share worth of the corporate is way lower than its 52-week excessive of Rs 322 and its market cap of Rs 28,457.39 crore is lower than Rs 36,915 crore that ONGC paid for a 51.11 per cent stake in 2018. The agency, they mentioned, controls a fifth of the world’s fastest-growing gasoline market however its share worth is not reflective of the worth. And so the corporate administration determined to go for a share buyback.