Moneycontrol
Nov 13, 2017 06:48 PM IST | Source: Moneycontrol.com

ONGC-HPCL look to complete merger by this fiscal year

“We will be able to close the deal of ONGC (ONGC-HPCL merger) in this year itself,” said Anuradha Thakur, Joint Secretary in Department of Investment and Public Asset Management (DIPAM).

Himadri Buch @himadribuch

The merger of the much-talked about oil giants ONGC-HPCL will be closed in the current financial year (FY18).

“We will be able to close the deal of ONGC (ONGC-HPCL merger) in this year itself,” said Anuradha Thakur, Joint Secretary in Department of Investment and Public Asset Management (DIPAM).

She was talking on the sidelines of a launch of ICICI Prudential Bharat 22 Index which opens on November 14, 2017.

When announced in July, ONGC, one of the richest PSUs with amount of cash, had pegged the cost of acquiring the 51.11 percent government stake for around Rs 32,000 crore; but since then the HPCL stock has rallied and there are fears that the oil and gas explorer will have to shell out much more than the initial estimate.

When completed, ONGC will become the first fully integrated state-run oil and gas company with significant upstream and downstream operations with many refineries and over 14,400 retail outlets.

On July 19, the cabinet had approved the sale of its 51.11 percent in the third largest oil retailer and refiner to ONGC as part of its effort to create an integrated energy behemoth and also to meet the hefty Rs 72,500-crore selloff target it had budgeted for this fiscal.

Recently GIC Re, New India Assurance and HDFC Life IPOs had hit the market.

She further said the government is evaluating the timings of 3 more insurance IPOs—National Insurance, United Insurance, Oriental Insurance which are yet to hit the market.

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