Hindustan Petroleum stock trades flat after receiving letter from Sebi
Accordingly, HPCL intends to rectify the shareholding pattern and classification of Promoters by the stipulated date as per the direction from SEBI assuming that the above position is not in violation of any SEBI regulations.
Hindustan Petroleum (HPCL) has sought specific clarifications from SEBI pertaining to procedures and approvals related to the subject matter as per applicable SEBI Regulations. The matter was also explained in detail during the meeting held on June 7, 2019, at SEBI office and additional inputs, as desired, were provided vide our email dated June 27, 2019.
While the necessary clarifications, as sought, have not been received, SEBI vide letter dated August 6, 2019, has now advised HPCL to abide by the direction of MoP&NG to indicate 'President of India' as the Promoter of HPCL and ONGC also to be added as a Promoter below 'President of India', the company said in the filing.
Accordingly, HPCL intends to rectify the shareholding pattern and classification of Promoters by the stipulated date as per the direction from SEBI assuming that the above position is not in violation of any SEBI regulations.
In case any different position emerges in future, the same will be dealt with based on the available facts with no liability whatsoever on HPCL as a result of the implementation of the above directive from SEBI.
In absence of the specific clarification from SEBI regarding procedure and approvals in the subject matter, in order to give effect to the above direction of SEBI by the stipulated date, we have no choice but to infer that no further approvals whatsoever is required to be obtained by HPCL from any stakeholder/agency in this regard, the company added.
The company's net profit fell 53% yoy to Rs811cr on lower refining margins and inventory losses. The year-ago net profit was Rs1,719.2cr.
The decline in profit can be attributed to the sharp decline in crude prices in May and June 2019, leading to inventory losses both, at the refinery and in marketing, as well as also lower average refining margins for all products except for LPG and fuel oil.
Stock view:
Hindustan Petroleum Corporation Ltd is currently trading at Rs246.05, up by Rs1.45 or 0.59% from its previous closing of Rs244.60 on the BSE.
The scrip opened at Rs245.30 and has touched a high and low of Rs248.20 and Rs241.35 respectively.
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