107 per cent returns: Maharatna expands horizons with strategic acquisition in subsidiary!
President of India holds 58.89 per cent stake in this company.
On July 19, 2023, Sensex surged by 0.45 per cent, setting a new record high at 67,171, while Nifty also achieved a new all-time high at 19,851, with a gain of 0.42 per cent. The market exhibited strong momentum, reflecting investor confidence and positive sentiment. The upward movement of both indices indicates the bullish trend and suggests a positive outlook for the overall market.
On 17th July 2023, ONGC, the Oil and Natural Gas Corporation Limited, finalized a Share Purchase Agreement to acquire 19,960 equity shares, equivalent to 0.0035 per cent of its subsidiary, Petronet MHB Limited (PMHBL). With this acquisition, ONGC's stake in PMHBL will rise from 49.996 per cent to 49.999 per cent, enhancing its position and involvement in the company.
The acquisition was conducted at "arm's length," and no related party transactions were involved. The purchase was completed through cash consideration, costing Rs 2,09,181 for the 19,960 equity shares. This move aligns with ONGC's growth and expansion plans in the pipeline transportation of petroleum products.
The Oil and Natural Gas Corporation Limited (ONGC) is a prominent central public sector undertaking under the ownership of the Ministry of Petroleum and Natural Gas, Government of India. Established on August 14, 1956, by the Government of India, ONGC holds a significant role in the country's energy sector. Its headquarters are located in New Delhi, making it a key player in India's oil and natural gas exploration, production, and distribution.
ONGC, a Maharatna company, has 58.89 per cent of its stake held by the President of India. As a significant player in the Indian energy sector, ONGC's Maharatna status symbolizes its strategic importance and exceptional performance.
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The stock boasts an attractive dividend yield of 6.45 per cent, while the company has consistently maintained a robust dividend payout of 32.2 per cent, reflecting its commitment to rewarding shareholders with steady returns.
Today, despite the overall market sentiments, the shares of Oil and Natural Gas Corporation Limited experienced a slight decline of 0.15 per cent and were trading at Rs 166.65 per share on BSE.
The stock has witnessed significant buying activity in the last 3 years as it has given multibagger returns of more than 107 per cent.