ONGC scrip up 3% on Cabinet nod to its HPCL stake buy
Shares of Oil and Natural Gas Corporation rose by nearly 3 per cent on Thursday after the Cabinet approved sale of the government's stake in oil refiner HPCL to India's largest oil producer ONGC.
Defying its sluggish opening, the ONGC stock gained 2.91 per cent to Rs 167.80 on the BSE. On the NSE, the scrip went up by 2.97 per cent to Rs 167.85. The stock was the biggest gainer on the benchmark Sensex and the Nifty.
The Cabinet on Wednesday approved sale of the government's 51.11 per cent stake in oil refiner HPCL to India's largest oil producer ONGC for a potential Rs 26,000-30,000 crore, a top source said.
The source said the Cabinet headed by Prime Minister Narendra Modi gave in-principle approval to Oil and Natural Gas Corporation (ONGC) to buy Hindustan Petroleum Corporation Ltd (HPCL).
ONGC, the source added, will not have to make an open offer to minority shareholders of HPCL as the government's holding is being transferred to another state-run firm and the ownership is not changing.