HPCL: Govt set to get significant stake post preferential issue

The Indian government is set to get a significant stake in Hindustan Petroleum Corporation Ltd (HPCL) five years after it exited oil marketing company. In this year’s budget, the government had provisioned Rs.30,000 crore towards capital support to oil marketing companies. Indian Oil and BPCL have ready approved rights issues while HPCL has been advised to make a preferential share allotment to the government, Press Trust of India reported, citing sources. Preferential issue is procedure of bulk allotment of fresh shares to a specific group of investors.