MENU × BUSINESS
Banking And InsuranceCryptocurrencyDigital MarketingErpFood And BeveragesHealthcareLegalMarketing And AdvertisingMedia And EntertainmentMetals And MiningOil And GasRetailTelecom
TECHNOLOGY
Artificial IntelligenceBig DataCloudCyber SecurityE CommerceEducationGaming And VfxIT ServiceMobileNetworkingSAPScience And TechnologySecuritySoftwareStorage
PLATFORM
CiscoDatabaseGoogleIBMJuniperM2MMicrosoftOracleOracleRed Hat
LEADERSHIP
CEO ReviewCompany Review
MAGAZINE
ASIA INDIA
STARTUPS CLIENT SPEAK CONTACT US

The Silicon Review Asia

HPCL Will Now Acknowledge ONGC as Promoter as Per Government Directives

HPCL Will Now Acknowledge ONGC as Promoter as Per Government Directives

The government, according to sources, has directed the state-owned oil and natural gas firm, Hindustan Petroleum to acknowledge ONGC as a promoter in regulatory filings in order to eliminate the challenging contest that has been happening between the two companies since a long time. It has blocked the synergy gains from the Rs 37,000 crore acquisition deal.

ONGC has previously made attempts to assert its authority but HPCL management has obstructed its attempts. The ongoing bitter relations between the two firms have affected the HPCL-MRPL merger plans resulting in its deferral. In public filings of its shareholding pattern, HPCL identifies the President of India with zero stakes as the promoter and ONGC with 51.11% stake as a public shareholder. As ONGC is put under the category of a public shareholder, it might have to go through the risk of losing the regulatory exemption from making an open offer to other HPCL shareholders. The exemption was made on the basis that the deal was a share transfer between promoter entities.

Last fiscal year, the deal that helped the government go beyond its divestment target in return used up all of ONGC’s cash. As a result ONGC was debt-laden for many years along with an acquisition that was beyond the firm’s control. In the HPCL’ board, ONGC has just one nominee and therefore it is trying to bring forward this issue of promoter. But its subsidiary has ignored this issue.

The matter hasn’t got much attention from the oil industry also, but due to the persistent efforts and representations by ONGC and a view from the law ministry, the oil ministry was bound to issue a directive to HPCL to give the recognition to ONGC along with the President of India as promoter.

YOU MAY ALSO LIKE

Tariff plans will cost higher from the next financial year as telecom companies are gearing up to increase rates

The ongoing Covid pandemic had significantly increased the number of mobile and internet users worldwide. The high amount of usage is expected to drop...

Business Travelers to Stay at Singapore’s Changi Airport Bubble

Singapore’s open economy depends heavily on tourism and business. But its vibrant but small economy has been hurting as the circumstances due to...

Countries in Asia-Pacific are marching towards ‘green recovery’ amidst Covid-19 crisis

2020 has been an unforgettable year for many of us. The ongoing Covid crisis has reminded people that it is very important to have an uninterrupted an...

Department of Telecommunication to announce the new schedule for 5G trials

Department of Telecommunications (DoT) is all set to announce the new schedule for 5G trials. The Dot made this decision after being pulled by the par...

RECOMMENDED