Shares of state-owned Oil and Natural Gas Corp (ONGC) today surged over 3 per cent, buoyed by the company's acquisition of the government's entire 51.11 per cent stake in oil refiner HPCL.
On January 20, ONGC announced the acquisition of government's entire 51.11 per cent stake in oil refiner HPCL for Rs 36,915 crore, paying a premium of over 10 per cent.
Shares of ONGC closed the day 3.28 per cent higher at Rs 199.95 on the BSE. During the day, the stock jumped 6.40 per cent to Rs 206.
On the NSE, the shares surged 3.74 per cent to end at Rs 200.95.
HPCL, however, witnessed a drop of over 3 per cent on the bourses.
On the BSE, shares of the oil refiner settled at Rs 401.75, down 3.55 per cent from the previous close, while the stock dropped by 3.32 per cent to close at Rs 402.40 on NSE.
ONGC will pay Rs 473.97 per share for 77.8 crore shares of the government in Hindustan Petroleum Corp Ltd (HPCL).
The price it is paying is 14 per cent higher than Friday's closing price of HPCL and over 10 per cent of the 60 -day weighted average of the scrip.
The transaction, which will help the government cross its annual sell-off (disinvestment) target for the first time ever, has been executed through an off-market deal.
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