LAST UPDATED: March 31, 2021, 1:22 p.m.
New Delhi (Anish Yande): Hindustan Petroleum Corporation Ltd shares rose on Wednesday’s trading session. The shares rose by up to 2 percent on today’s trading session, with the shares reaching an intraday high of Rs 232.50 on the NSE. Following the opening bell, shares of HPCL opened at Rs 230.70.
HPCL completes acquisition of stake in HPCL Shapoorji Energy:
The shares rose as Hindustan Petroleum Corporation Ltd stated that it had completion the acquisition of a 50 percent stake in HPCL Shapoorji Energy Pvt Ltd. The oil and gas company has bought out the stake from its partner SP Ports for an amount of Rs 397.06 crore.
HPCL stated that the acquisition was finalized on March 30, 2021. 25.70 crore number of equity shares previously held by SP Ports Private Limited were transferred to HPCL for a consideration of Rs 397.06 crore.
HPCL Shapoorji Energy Private Limited (HSEPL) is an equal joint venture company between the Shapoorji Pallonji Group and HPCL. HSEPL is constructing an LNG terminal in Gujarat.
HPCL to develop LNG terminal at Chhara:
The LNG terminal would come with a capacity of 5 million tonnes a year and would be located at Chhara in the Gir-Somnath district of Gujarat.
The terminal is located within the greenfield Chhara port boundary being developed by Simar Port Pvt Ltd, which is a wholly-owned subsidiary of SP Ports.
LNG terminal project by HSEPL is expected to cost about Rs 4,300 crore. The LNG project is expected to be completed till December 2022.
The acquisition is a part of measures by Shapoorji Pallonji Group which is undertaking several asset monetization plans for resolving its financial troubles.
Hindustan Petroleum Corporation Ltd owns and operates 674 CNG stations currently. HPCL has a presence in the city gas distribution business spread across 34 districts in nine states. The oil and gas company aims to diversify its product portfolio following the acquisition.
HPCL would be venturing into establishing LNG distribution stations, following the acquisition.
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