Why HPCL buyback and not NTPC’s made Street happy
Synopsis
HPCL’s buyback is being done through the open market over six months, while NTPC’s buyback is through the tender offer process. Analysts said NTPC has investors who are not tendering shares in the offer, as reflected in the acceptance ratio of 16-20 per cent, as the buyback price is lower than market expectations.
Mumbai: State-owned companies HPCL and NTPC announced their share buybacks around the same time but their share prices have seen divergent behaviour since then. While shares of oil marketer HPCL have rallied 16 per cent following the announcement early in November, thermal power generator NTPC is up 4 per cent. Analysts said this is because of the different routes that both the companies have taken to buy back shares from public investors.HPCL’s
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