Not one but two oil companies – BPCL and HPCL – may go under the hammer this fiscal with state-owned oil and gas explorer ONGC now looking to sell its stake in recently-acquired refiner HPCL to a strategic investor, possibly an overseas oil company, to regain debt-free status of the company existing prior to the expensive buy.
The plan for Hindustan Petroleum Corporation Ltd (HPCL) follows the government’s go ahead to invite a strategic investor for Bharat Petroleum Corporation Ltd (BPCL) where the Centre owns 53 per cent stake.
Government sources indicated that the board of ONGC has informally debated on continuing to hold on to HPCL as its subsidiary since no synergy was flowing from its acquisition but the expensive buy had only added debt burden on the parent. Read More
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