ONGC stock jumps 3.3% on 51% stake buy in HPCL
Posted on 23rd January 2018 |
.jpg) |
| With ONGC paying only a modest premium for a 51.1% stake in HPCL, limiting the dilution in the fair value to just 6%, the counter gained 3.3% on Monday to close at Rs 199.95. ONGC will pay close to Rs 37,000 crore to buy the stake. Meanwhile, the HPCL stock lost 3.6% on Monday to close at Rs 401.75 apiece. The price — Rs 474 per share — at which the deal has been transacted is a 9% premium to HPCL’s 26-week average price of Rs 435 and a near 14% premium over the Friday’s close of Rs 416.55. “We compute a modest negative impact of Rs 8 per share for ONGC from the proposed transaction, valuing HPCL at Rs 344/share,” analysts at Kotak Institutional Equities wrote. The clarity on HPCL transaction sets the stage for a reversal of ONGC’s sharp under-performance against the rally in global crude prices, they added. “The ONGC stock has under-performed dated Brent crude price by about 20% over the past six months, amid speculations of significant premium being ascribed to acquire HPCL and necessity of an open offer for HPCL’s minorities, they wrote. The price would imply a multiple of around 12 times on consolidated earnings for FY18-19, analysts observed. ONGC will not be making an open offer for HPCL’s minority shareholders. ONGC is required to seek the approval of minority shareholders, once the share purchase agreement has been executed. This is as per the provisions for related-party transactions under Section 188(3) of the Companies Act, 2013. |
|
|
|
|
Bharti Airtel defers Q2 results till Nov 14 over ambiguity on AGR verdict
Posted on 29th October 2019 |
.jpg) |
Bharti Airtel said on Tuesday it has postponed its second-quarter earnings report to mid-November, as the wireless operator sought clarity on the court ruling asking telecom firms to cough up overdue payments to the government.
Shares of the company, which was expected to release its quarterly numbers later in the day, dropped 3.3 per cent in early trade. |
|
|
Rupee slips 8 paise vs US dollar in early trade amid drop in oil prices
Posted on 7th October 2019 |
.jpg) |
The rupee on Monday opened eight paise lower at 70.96 against the US dollar amid drop in crude oil prices and rise in Asian equities. The domestic unit on Friday closed almost flat at 70.88 against after the Reserve Bank of India (RBI) in a widely expected move cut key interest rates by 0.25 percentage point. On a weekly basis, the local unit slumped by 32 paise. |
|
|
LIC pips private insurers in first-year premium growth during April-August
Posted on 13th September 2019 |
.jpg) |
In the first five months of the current financial year, first-year premiums of life insurance companies grew by 39.84% (year-on-year) at Rs 1.05 lakh crore as compared to Rs 75,588.35 crore in April-August of 2018-19. Life Insurance Corporation of India (LIC) continued to grow at a faster pace compared to private insurance players, shows the data from the Insurance Regulatory and Development Authority of India (Irdai). |
|
|
Apollo Hospitals rules out further stake sale
Posted on 13th September 2019 |
.jpg) |
Apollo Hospitals Enterprise (AHEL) has ruled out further dilution of promoters’ stake in the company. The company also said its Rs 1,337-crore stake sale of Apollo Munich Health Insurance with mortgage major HDFC will be concluded by October. Following these stake sales, the promoters’ pledged position will come down from a high of 76% to 54% by October and eventually to 20% by November or December, company sources said here. |
|
|
World trusts India on Kashmir, not us: Pakistan minister Ijaz Ahmed Shah
Posted on 13th September 2019 |
.jpg) |
In a major embarrassment for Pakistan and its Prime Minister Imran Khan, the country's Interior Minister Ijaz Ahmed Shah, a retired brigadier, said the international community didn't believe Pakistan's narrative on Kashmir; instead it is India whose version is trusted. |
|
|
|
|
| Be the first person to write a business review for ONGC stock jumps 3.3% on 51% stake buy in HPCL |
|
|
|
