ONGC to pay Rs 36,915 crore for 51.11% stake in HPCL; Govt revises divestment target

Money Control.com
Jan 20, 2018

State-owned Oil and Natural Gas Corporation (ONGC) will pay Rs 36,915 crore for a 51.11 percent stake in Hindustan Petroleum Corporation (HPCL), the former said in a filing to stock exchanges.

ONGC will pay Rs 473.97 per share and will complete the acquisition of government's stake in HPCL by January end.

A purchase by ONGC provides the government an opportunity to offload its stake in HPCL without a huge dilution in control, as the government holds a majority stake in ONGC too.

The deal was a part of the government's effort to create an integrated energy behemoth and also to meet the hefty Rs 72,500-crore disinvestment target it had budgeted for this fiscal.
However, the deal has been delayed repeatedly over the past year due to obstacles in getting clearances, and due to valuation concerns and lack of money with ONGC to execute the deal.

Divestments so far this year have garnered Rs 53,800 crore for the government and with this deal in the bag, its target of Rs 72,500 crore for the year is taken care of.

According to CNBC TV18, the government has now revised its disinvestment target for FY18 to around Rs 92,000 crore.

Speaking about the acquisition, the finance ministry on Saturday said that ONGC will now have presence across the entire value chain and will become the country's first vertically-integrated oil major.

Even after the deal goes through, HPCL will continue being a central public sector enterprise.



Comments

Post a Comment

Popular posts from this blog

India Joins Russia in Voting Against West-Backed Move to Expand Powers of OPCW

The Wire: June 28, 2018 New Delhi: India voted against a UK-backed move that will allow the global chemical weapons watchdog to apportion blame for illegal attacks, criticising the decision to grant “unchecked powers” to the head of the group which could be used for “partisan” purposes. On Wednesday, more than two-thirds of the member states of the Organisation for the Prohibition of Chemical Weapons (OPCW) voted to authorise the international body to identify the perpetrators and sponsors of a chemical weapons attack. It also specifically called on the OPCW’s technical secretariat to begin work on identifying the perpetrators behind the use of chemical weapons in Syria. The draft decision, sponsored by 30 countries, was adopted at the fourth special session of the conference of the states parties to the Chemical Weapons Convention at the Hague, with 82 in favour and 24 negative votes. While Europe, the United States and their allies voted ‘yes’, there was strong oppo...
Read more

As financial insecurity rises in urban India, so does investment in insurance

Image
Scroll.in March 13, 2020 Urban Indians are becoming less confident about their financial security. Up to 58% of them fret over financial independence post retirement, which is a 4% increase from last year. An equal share of urban Indians worry about meeting their daily medical expenses and sustaining their current lifestyle once they stop working. The findings are part of a survey published by Delhi-based Max Life Insurance in association with London-based consultancy Kantar. The firms surveyed 7,014 respondents in 25 cities, including six metros, nine tier-1 cities, and 10 tier-2 cities, between December 2019 and January 2020. Source: Max Life Insurance via Quartz The trends Source: Max Life Insurance via Quartz Source: Max Life Insurance via Quartz Source: Max Life Insurance via Quartz A significant share of urban Indians also say their families will have no financial support in the event of the breadwinner’s death. In such a scenario, around 57% believe the family sav...
Read more

ED tracks Swiss Bank A/Cs of Agusta scamster

The Poineer February 10,2019 Rakesh K Singh The Enforcement Directorate (ED) has tracked a dozen Swiss bank accounts in the name of Rajiv Saxena, who is key accused in the Rs 3,600 crore AgustaWestland VVIP chopper scam. The ED has also found out accounts held by  his family members and associates where the kickbacks in the now scrapped deal were allegedly parked. Two bank accounts are in the name of Rajiv Saxena’s  associates Pankaj Jain and Sumita Jain who are also the authorised signatories. The  third is in the name of another associate Ajit Singh Bubber, but Rajiv and his family members are authorised signatories. The remaining nine accounts are largely owned and operated by Rajiv, his family members and associates. Rajiv Saxena was deported by the UAE authorities on January 30 and the ED formally arrested him the next day and a court later granted his remand to the agency. He is currently undergoing custodial interrogation by the ED. The agency had in 2017...
Read more