HPCL acquires 17.28 per cent stake in Petronet MHB

Late after the trading hours on Thursday, Hindustan Petroleum Corporation Limited (HPCL) informed the bourses that it had entered into a share purchase agreement with eight nationalised banks for the acquisition of 17.28 per cent shares of Petronet MHB Limited, an associate unlisted company of HPCL. Post-acquisition, the shareholding of HPCL in the target entity will be about 49.99 per cent.

The acquisition, which is expected to be completed by March 31, 2020, is expected to open up possible opportunities for synergy, better cost economics and revenue maximisation for HPCL. The total consideration of the agreement is said to be Rs 185 crore.

The target company, Petronet MHB had revenue from operation of Rs 128.33 crore in 2016-17, which increased to Rs 130.89 crore in 2017-18 and further to Rs 158.44 crore in the following year.

HPCL is engaged in the business of refining of crude oil and marketing of petroleum products. Its refineries upgrade the crude petroleum into various products to over 300 grades of lubricants, specialities and greases. The company has marketing infrastructure, which includes a network of installations, depots, retail outlets, aviation service stations and LPG distributors.

At 10.40 am on Friday, the stock was trading at Rs 196.55, down by 3.93 per cent or Rs 8.05 per share. The 52-week high is recorded at Rs 333.45 and the 52-week low is Rs 194.60 on BSE.