HPCL jumps post crude oil plunge; raises capital expenditure

On Monday, the stock of Hindustan Petroleum Corporation Limited (HPCL) gained around 8.56 per cent in the early morning trade along with other oil companies such as Bharat Petroleum and Indian Oil, which jumped 5.18 and 1.98, respectively. The positive development was witnessed as a result of 25 per cent plunge in crude oil after Saudi Arabia slashed prices and set plans for a major increase in crude production in April.

Besides, the oil and natural gas company-HPCL, recently, also raised Rs 1,400 crore for funding its capital expenditure.

On March 6 2020, the company informed after market hours that it has issued unsecured, redeemable, non-convertible, non-cumulative and taxable debenture of Rs 10,00,000, each aggregating to Rs 1,400 crore on private placement basis. This was done for the purpose of raising capital expenditure for the company, including recoupment of expenditure already incurred. The date of maturity of this has been set for April 12, 2030 and the coupon offered for this is at 7.03 per cent per annum.

At 2.12 pm, the stock of HPCL is trading at Rs 214.15, up by 6.62 per cent against its previous close of Rs 200.85 on BSE.