HPCL was piped to gains on Wednesday on reports that at least 12 multinationals and domestic companies have presented initial bids for the Centre's 34.01% stake in the company.

The scrip of the state-run oil refiner found itself progressing by 2.17% to Rs 302 on BSE, as a result. Volumes of over 127,000 shares were recorded on the counter by 10:00 IST.

HPCL has now risen 6.54% from Rs 283.45 on 13 March 2003. In the 17 prior sessions (between 18 February and 13 March 2003), the scrip had shed 14% to Rs 283.45 from Rs 329.60 following concerns over the company's divestment prospects as well as on fears of the US-Iraq war.

It has been reported that global giants like Royal Dutch Shell, Saudi Aramco, ChevronTexaco of the US and Petronas of Malaysia have shown interest in acquiring the government's 34.01% equity stake in the company. But market watchers do not guarantee the scrip's prolonged position at the higher levels as profit booking may arise after the recent spell of gains. On Monday, Life Insurance Corporation was believed to be actively buying on the counter.

Reports suggest that the response to the government's invitation for bids has been excellent with the list of bidders including Reliance Industries, Kuwait Petroleum Corporation and British oil giant BP . Recently, the government appointed HSBC as advisor for the divestment process of HPCL.

17 March 2003, was the last date for submission of initial bids for acquisition of management control along with the government's 34.01% stake in HPCL. As per the government's plan, a further 5% of its equity will be sold to HPCL employees. The government will retain 12% holding in HPCL post-divestment. Currently, its holding in HPCL is 51.01%.

HPCL has about 4,600 retail outlets and a 20% market share in retailing petroleum products.

For the third quarter ended 31 December 2002, HPCL registered a gigantic 444% rise in net profit to Rs 330.62 crore (Rs 3.3 billion) on a 28% jump in net sales to Rs 14,210.23 crore (Rs 142.2 billion). The company also recommended an interim dividend of 20% (Rs 2 per share) for the financial year 2002-03.

BSE code: 500104