HPCL announces a surprise buyback at 250/share; 30% premium to yesterday's stock price

Опубликовано: 01 Октябрь 2024
на канале: ET NOW

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HPCL announced a rerating move on regarding its stock yesterday in the form of a surprise buyback. The buyback was announced at 250/share which was a 30% premium to yesterday's stock price. They also announced that Promoter(which is ONGC in this case) will not participate in buyback but it's aimed only dor the minority shareholders.

About 6.25% of equity being will be bought back in this transaction which as per experts will leas to improving return ratios for the company. CMD of HPCL Mr Surana told us that this buyback was considered as the cost of debt lower than the cost of equity. Experts say this move will help in improving the valuations of the company and for the PSU refining space as well. CLSA said buyback of 18% of free float via this transaction is a big positive and upgraded the stock to Buy.

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