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MRPL gains on buzz of merger plans with OMPL

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Capital Market
Last Updated : Jul 14 2014 | 11:53 PM IST

Mangalore Refinery and Petrochemicals rose 2.05% to Rs 67.30 at 11:43 IST on BSE on report ONGC is evaluating a proposal to merge ONGC Mangalore Petrochemicals with the company.

Meanwhile, the BSE Sensex was down 40.47 points, or 0.16%, to 24,983.88.

On BSE, so far 92,000 shares were traded in the counter, compared with an average volume of 3.07 lakh shares in the past one quarter.

The stock hit a high of Rs 69.90 and a low of Rs 65.95 so far during the day. The stock hit a 52-week high of Rs 80.65 on 21 May 2014. The stock hit a 52-week low of Rs 26.45 on 16 August 2013.

The stock had underperformed the market over the past one month till 11 July 2014, falling 7.44% compared with 1.76% fall in the Sensex. The scrip had, however, outperformed the market in past one quarter, rising 26.46% as against Sensex's 10.59% rise.

The large-cap company has an equity capital of Rs 1752.60 crore. Face value per share is Rs 10.

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ONGC Mangalore Petrochemicals (OMPL) is promoted by Oil and Natural Gas Corporation (ONGC) and Mangalore Refinery and Petrochemicals (MRPL). As on 31 March 2012, ONGC held 46% stake and MRPL held 3% stake in OMPL. Other individual shareholders held 51% stake in OMPL.

According to the media report, ONGC has appointed consultancy firm Deloitte to come up with a fair valuation of OMPL. Deloitte is expected to come up with the valuation and its recommendations by next month.

OMPL was incorporated on 19 December 2006. It is building an aromatic complex in 442 acres of land acquired in Mangalore Special Economic Zone with a project cost estimate of Rs 5750 crore. The project is reportedly scheduled to be completed by August 2014.

The complex is totally integrated with MRPL refinery. The feed stock for the aromatic complex would be supplied by MRPL refinery situated adjacent to OMPL. The complex will process naphtha received into paraxylene and benzene. The complex is designed to produce 0.9 MMTPA of paraxylene and 0.3 MMTPA of benzene.

MRPL reported a net profit of Rs 1067.04 crore in Q4 March 2014 as against net loss of Rs 61.90 crore in Q4 March 2013. Net sales rose 2.9% to Rs 19127.51 crore in Q4 March 2014 over Q4 March 2013.

MRPL, a subsidiary of ONGC, is a grassroot refinery. MRPL has a design capacity to process 15 million metric tons per annum and has 2 hydrocrackers producing premium diesel (high cetane). It also has 2 CCRs producing unleaded petrol of high octane.

As on 30 June 2014, ONGC owns 71.63% stake in MRPL. Another PSU firm, Hindustan Petroleum Corporation, has 16.96% stake in MRPL.

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First Published: Jul 14 2014 | 11:52 AM IST

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