(LiveMint)
Hindustan Petroleum Corp Ltd (HPCL) has for the last 15 months refused to recognise its majority shareholder ONGC as its promoter but the government has now for all practical purposes started giving the company its due recognition. Government headhunter Public Enterprises Selection Board (PESB) on June 17 called ONGC Chairman and Managing Director Shashi Shanker to assist in selecting the new Director (Finance) of HPCL, a move seen as a stamp of approval for ONGC being the parent of HPCL, sources in know of the development said.
Oil and Natural Gas Corp (ONGC) in January last year bought the government’s entire 51.11 per cent stake in HPCL for₹36,915 crore. HPCL thereafter became its subsidiary but HPCL management has continuously refused to recognise ONGC as its promoter. In regulatory filings for five consecutive quarters, HPCL listed “President of India” as its promoter with “zero” per cent shareholding. ONGC was listed as “public shareholder”, owning “77.88 crores” shares or “51.11 per cent” shareholding of the company.
