ONGC up 2 pc on Cabinet nod to govt's stake sale in HPCL

New Delhi: Shares of Oil and Natural Gas Corporation ended with nearly 2 per cent gains today after the Cabinet approved sale of the government's stake in oil refiner HPCL to India's largest oil producer ONGC. The stock rose by 1.75 per cent to end at Rs 165.90 on BSE.

During the day, it jumped 2.91 per cent to Rs 167.80. On NSE, shares of the company gained 1.74 per cent to close at Rs 165.85. Shares of HPCL, however, fell by 4.34 per cent to close at Rs 367.35 on BSE. Intra-day, it lost 5.27 per cent to Rs 364.75.

The Cabinet yesterday 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.

ONGC, the source said, 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. The deal will be completed within a year, he said.