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ONGC gains after ONGC Videsh gets approval to buy stake in JSC Vankorneft

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Capital Market
Last Updated : Oct 07 2016 | 12:01 AM IST

ONGC rose 0.60% to Rs 268.35 at 14:10 IST on BSE after cabinet approval for acquisition by ONGC Videsh for 11% stake in JSC Vankorneft from Rosneft Oil Company.

Meanwhile, the BSE Sensex was down 102.93 points, or 0.36%, to 28,118.05.

On BSE, so far 3.87 lakh shares were traded in the counter, compared with average daily volume of 7.65 lakh shares in the past one quarter. The stock hit a high of Rs 273.25 and a low of Rs 267.30 so far during the day. The stock hit a 52-week high of Rs 275.25 on 5 October 2016. The stock hit a 52-week low of Rs 188 on 12 February 2016. The stock had outperformed the market over the past 30 days till 5 October 2016, rising 11.56% compared with 2.61% decline in the Sensex. The scrip had also outperformed the market in past one quarter, rising 17.69% as against Sensex's 3.75% rise.

The large-cap company has equity capital of Rs 4,277.75 crore. Face value per share is Rs 5.

The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Narendra Modi, yesterday, 5 October 2016 gave its approval to an acquisition by ONGC Videsh (OVL) for 11% stake in JSC Vankorneft from Rosneft Oil Company (Rosneft), the National Oil Company (NOC) of Russian Federation (Russia). Rosneft operates Vankor fields, with Vankorneft, its wholly owned subsidiary. OVL will be paying an amount of $930 million for acquiring 11% stake in Vankorneft. OVL is an investment arm of ONGC.

The acquisition of stake in Vankorneft will provide 3.2 million metric ton of oil equivalent (MMTOE) to OVL by 2017. It will also provide an opportunity to Indian public sector oil and gas companies to acquire new technologies from Rosneft. The acquisition is in line the ONGC's stated objective of adding high quality international assets to India's Exploration and Production (E&P) portfolio and thereby augmenting India's energy security.

ONGC's net profit declined 21.2% to Rs 4232.54 crore on 21.5% decline in net sales to Rs 17670.37 crore in Q1 June 2016 over Q1 June 2015.

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ONGC is India's largest oil and gas exploration firm by sales.

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First Published: Oct 06 2016 | 2:03 PM IST

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