HPCL edges higher on report of JV pact with Rajasthan for refinery

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rose 1.38% to Rs 440.15 at 11:05 on after the report suggested that it has inked joint venture agreement with of for the upcoming refinery in Barmer at a cost of Rs 43129 crore.

Meanwhile, the S&P Sensex was down 229.37 points, or 0.72%, to 31,567.23.

On the BSE, 99,972 shares were traded in the counter so far, compared with average daily volume of 4.31 lakh shares in the past one quarter. The stock had hit a high of Rs 443 and a low of Rs 430 so far during the day. The stock had hit record high of Rs 462.30 on 7 August 2017. The stock had hit a 52-week low of Rs 253.60 on 23 August 2016.

The stock had outperformed the market over the past one month till 17 August 2017, rising 15.01% compared with the Sensex's 0.87% decline. The stock had also outperformed the market over the past one quarter, gaining 20.16% as against the Sensex's 3.71% rise. The scrip had also outperformed the market over the past one year, gaining 60.24% as against the Sensex's 13.53% rise.

The large-cap company has an equity capital of Rs 1523.82 crore. Face value per share is Rs 10.

According to the agreement, will command 74% stake in the joint venture, Refinery, while the state will hold remaining 26%, report added.

The Chief Minister Vasundhara Raje reportedly said that as a result of the renegotiation with HPCL, a significant savings of Rs 40000 crore have been ensured in the project cost. She said that under the new conditions, the state will now get 12% return on investment (investment income) than the 2% fixed in the previous agreement.

Raje said that Barmer refinery will be the country's first refinery project to manufacture petro-products of BS-6 standard and will be an environmentally friendly project.

HPCL's net profit fell 55.9% to Rs 924.75 crore on 19.2% rise in net sales to Rs 53384.84 crore in Q1 June 2017 over Q1 June 2016.

is a public sector oil marketing company. The of India held 51.11% stake in as per the shareholding pattern as on 30 June 2017.

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