ONGC seeks shareholder nod for HPCL deal

New Delhi: State-owned Oil and Natural Gas Corp (ONGC) has sought shareholder approval for its decision to buy government’s 51.11 per cent stake in Hindustan Petroleum Corp Ltd (HPCL) for Rs 36,915 crore.

With government also being a majority shareholder in ONGC, the acquisition fell in the definition of related party transaction for which shareholder nod is needed as per law, the company said in a shareholder notice seeking approval for the deal through a postal ballot.

“However, as a related party to the transaction, there will be no participation by the government of



India in the postal ballot process,” it said.

ONGC said it bought the entire shareholding of the government of India in HPCL at Rs 473.97 per share. The transaction was consummated as an offmarket transaction on January 31, after which ONGC had become the holding company of HPCL, it said.

ONGC said it was seeking shareholder “ratification through postal ballot for acquisition of 77.88 crore equity shares, representing 51.11 per cent, in the paid-up capital of HPCL from Government of India (GoI)” since the GoI, being the promoter, is a related party.