HPCL staged a smart recovery on Monday on good buying support from domestic institutions.
The scrip of the state-run oil refiner was up by 3.83% at Rs 294.30 on the BSE in late-afternoon trades, recovering from its intra-day low of Rs 277. A huge volume of over 1.89 million shares was recorded on the counter by 15:55 IST. In 17 sessions between 18 February and 13 March 2003, the scrip had shed 14% to Rs 283.45 from Rs 329.60 on sustained selling pressure following concerns over the company's divestment prospects as well as on fears of US-Iraq war.
Dealers said the recovery on the HPCL counter was purely due to buying support from domestic institutions, especially Life Insurance Corporation.
Meanwhile, the BSE Sensex stood at 3,078.50, down by 29.75 points, recovering from its intra-day low of 3049.05.
The recovery in the HPCL scrip was also attributed to reports that global giants have shown interest in acquiring the government's 34.01% equity stake stakes in the company.
Royal Dutch Shell, the world's third largest oil group, today submitted its expression of interest for acquiring the government's stake. The world's largest oil and gas company by reserves and production, Saudi Aramco, too, submitted its EoI.
Reliance Industries, Kuwait Petroleum Corporation and Petronas of Malaysia are also likely to put in EoIs later in the day.
Recently, the government appointed HSBC as its advisor for the disinvestment in HPCL.
Today is the last date for submission of initial bids for acquisition of management control along with the government's 34.01% stake in HPCL. As per the government's plan, a further 5% of its equity will be sold to HPCL employees. The government will retain 12% holding in HPCL post-divestment. Currently, its holding in HPCL is at 51.01%.
HPCL has about 4,600 retail outlets and a 20% market share in retailing petroleum products.
For the third quarter ended 31 December 2002 results HPCL registered a gigantic 444% rise in net profit to Rs 330.62 crore (Rs 3.3 billion) on a 28% jump in net sales to Rs 14,210.23 crore (Rs 142.1 billion). The company also recommended an interim dividend of 20% (i.e. Rs 2 per share) for the financial year 2002-03.
BSE code: 500104
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