ONGC fell 1.45% to Rs 190.20 at 10:04 IST on BSE after the company said it will pay about $1.2 billion for buying Gujarat State Petroleum Corporation's entire 80% stake in KG-basin natural gas block.
The announcement was made after market hours on Friday, 23 December 2016.Meanwhile, the BSE Sensex was down 218.93 points, or 0.84%, to 25,821.77.
On the BSE, so far 45,000 shares were traded in the counter, compared with average daily volumes of 6.74 lakh shares in the past one quarter. The stock had hit a high of Rs 192.30 and a low of Rs 189.05 so far during the day.
The stock hit a 52-week high of Rs 210.11 on 13 December 2016. The stock hit a 52-week low of Rs 125.40 on 12 February 2016. The stock had outperformed the market over the past 30 days till 23 December 2016, rising 4.19% compared with the 0.70% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 11.13% as against Sensex's 9.17% decline.
The large-cap company has equity capital of Rs 6416.62 crore. Face value per share is Rs 5.
ONGC announced that its board on Friday, 23 December 2016, considered the proposal and approved acquisition of the entire 80% participating interest (PI) of Gujarat State Petroleum Corporation (GSPC) along with operatorship rights, at a purchase consideration of $995.26 million for Deen Dayai West Field in Krishna Godavari (KG) Basin offshore.
ONGC and GSPC were engaged in discussions on a potential transaction for purchase by ONGC of GSPC's stake and operatorship in NELPIII block in KG Basin offshore.
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ONGC shall also pay part consideration of $200 million to GSPC towards future consideration for six discoveries other than Deen Dayai West Field, which will be adjusted upon valuation of the these discoveries subsequent to approval of their Field Development Plans by DGH/Management Committee of the block.
The transaction would be documented by signing a farm-in agreement with GSPC. Requisite approval from the Government will be sought by GSPC in accordance with provisions of production sharing contract of the block.
ONGC's net profit rose 6.3% to Rs 4974.92 crore on 10.3% decline in net sales to Rs 18286.62 crore in Q2 September 2016 over Q2 September 2015.
ONGC is India's largest oil and gas exploration firm by sales.
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