HPCL enters into SPA to acquire shares of HPCL Shapoorji Energy Pvt Ltd

Hindustan Petroleum Corporation Limited ("HPCL") has entered into a Share Purchase Agreement ("SPA") for acquisition of shares of HPCL Shapoorji Energy Private Limited, an Associate Unlisted Company of HPCL, from S P Ports Private Limited, a Joint Venture Partner.

HPCL Shapoorji Energy Private Limited ("Target Entity") is in process of setting and development of 5 MMTPA LNG storage and regasification terminal at Chhara, Gujarat. Since the Target Entity is still in construction phase, there has been nil revenue from operations.

HPCL ("Company"), a Maharatna CPSE, holds 50% of the equity share capital of the Target Entity as of December 31, 2020. The Company or its group companies does not have any interest in the Target Entity other than the 50% shareholding stated herein above.

The LNG Terminal Project of the Target Entity is expected to bring long-term value to the Company being a growing segment of the energy basket of the nation.

The Company has entered into a share purchase agreement dated March 27, 2021 ("Share Purchase Agreement") for acquisition of 50% of the paid up equity share capital of the Target Entity from S P Ports Private Limited.

The Target Entity was incorporated in October 2013 to set up and operate an LNG Re-gasification Terminal at the greenfield port at Chhara (Gujarat). EPC contracts have been awarded and construction is in progress at project site. Since the Target Entity is still in construction phase, there has been nil revenue from operations for the last three years.

Shares of HINDUSTAN PETROLEUM CORPORATION LTD. was last trading in BSE at Rs.229.8 as compared to the previous close of Rs. 227.55. The total number of shares traded during the day was 258986 in over 1489 trades.

The stock hit an intraday high of Rs. 231.9 and intraday low of 228.2. The net turnover during the day was Rs. 59735687.

Source : Equity Bulls

Keywords