The board of Hindustan Petroleum Corp Ltd (HPCL) on Wednesday approved share buyback worth ₹2,500 crore.

About Company

Hindustan Petroleum Corporation Limited (HPCL) is an Indian public sector oil and gas company.

It is a subsidiary of ONGC with its headquarters in Mumbai, Maharashtra.

It has a 25% market-share in India among public sector undertakings (PSUs) coupled with a strong marketing infrastructure.

Its parent company is ONGC which owns a 51.11% stake in the company.

How many shares to be Buyback?

The board has approved proposal to buyback 10 crore shares.

Price per Share

The price of the share is fixed at Rs 250 per Share.

Buyback at Premium

The buyback price is at premium of 34% to HPCL stocks’ closing price on 4 November.

All About Performance in Q2

HPCL’s second quarter profit jumped 135% to Rs 2,477 crore on increased refining and marketing margin and inventory and forex gains.

The sales revenue, however, fell 7% to Rs 61,340 crore during the July-September quarter on lower prices.

The gross refining margin rose to $5.11 per barrel during the quarter compared to $2.83 per barrel a year earlier.

Total income of the company declined 6.59 per cent YoY to Rs 62,439.86 crore.

Comment from Chairman

“We believe that HPCL share has got lot more intrinsic value than what is apparent in the market. Therefore, we think that we must unlock that value for our shareholders”,M K Surana.

Stock Market Impact

Shares of HPCL rose up to 5.51% to Rs 189.55, a gain of 5.51% intra day on BSE.

The stock has gained 9.25% in the last 2 days.

The stock opened with a gain of 2.73% today.

It trades higher than 5 day and 20 day moving averages but lower than 50 day, 100 day and 200 day moving averages.


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