ONGC not taking part in share buyback, but will eventually gain: HPCL CMD

Shareholders can be rewarded by way of bonus and dividends or by giving them an option for buyback, says M K Surana

Hindustan Petroleum Corporation Ltd (HPCL) has announced a share buyback in which its promoter, Oil and Natural Gas Corporation (ONGC), is not taking part. In an interview with Jyoti Mukul, M K Surana, chairman and managing director, HPCL, talks about the recovery in petroleum demand and how the buyback is cheaper. Edited excerpts:

What is the rationale behind the buyback?

Shareholders can be rewarded by way of bonus and dividends or through the buyback. We have done bonus and dividends in the past. Buybacks in private companies have been used in India and abroad. In India, the government offered its shares