ONGC deal is not value accretive for HPCL shareholders: analysts

At the industry level, the deal will pave way for more consolidation in the sector, analysts say

Hindustan Petroleum Corporation Limited (HPCL) slipped 4.4 per cent to Rs 367 on the Bombay Stock Exchange (BSE) on Thursday, a day after the Union Cabinet approved the sale of its 51 per cent equity in the company to Oil and Natural Gas Corporation (ONGC) post market hours, while ruling out the possibility of an open offer to the minority shareholders of HPCL given no change in effective ownership.
 
Since July 12, HPCL has outperformed the market by gaining 12 per cent till Wednesday on reports that the merger with ONGC will be completed by the end of this