HPCL jumps 8 per cent on buyback news; stock gains 15 per cent in a month
The shares of Hindustan Petroleum Corporation Limited (HPCL) surged by around 8 per cent on Thursday after the company’s board of directors approved a share buyback programme of Rs 2,500 crore.
The board has approved the plan to repurchase shares from the open market at a maximum price of Rs 250 per share, which is a buyback of around 10 crore shares, representing 6.56 per cent equity shares.
As against the closing price of HPCL’s stocks on November 4, the buyback price is at a premium of 34 per cent.
On the consolidated financial front for Q2FY21, the company posted net sales of Rs 45,945.48 crore, which is a decrease of 38.41 per cent YoY. As a result of strategic planning in refinery & marketing operation, containing the de-growth to less than the industry, efficient inventory management, and effective product placement, the company gained a net profit of Rs 2,810.56 crore in Q2FY21, which is a significant increase compared to the net profit of Rs 776.96 crore gained in Q2FY20.
On Thursday, the stock of the company was trading at Rs 201.25, up by 7.76 per cent or Rs 14.50 per share. Its 52-week high is Rs 317.10 and the 52-week low is Rs 155 on BSE.