Buzzing Stock: JM Financial appointed as merchant banker for HPCL-ONGC deal

The government is selling around Rs 37,000 crore worth of stake in HPCL to ONGC and for this deal process, JM Financial has been appointed as the transaction advisor. Also, Cyril Amarchand Mangaldas has been appointed as the legal advisor to handle this stake sale. 

The Department of Investment and Public Asset Management (DIPAM) started the process for selection of transaction advisor in July and five companies had expressed interest for the same. JM Financial, EY, PWC, ICICI Securities and Rothschild (India) Private Ltd. were the companies who submitted an expression of interest (EoI). 

JM Financial will act as a merchant banker for valuation. It will assist the government on modalities of disinvestment and timing and recommend the need for intermediaries required for the process. It will do a business valuation of HPCL, structure the transaction, suggest measures to fetch optimum value, and assess positioning of the strategic sale.

Also, on Friday, JM Financial Products Ltd., a subsidiary of JM Financial Ltd., executed an agreement to acquire equity shares of Vendiman Private Ltd. in two tranches. Post the conversion, on a fully diluted basis, the said acquisition would result in a holding of up to 41.21 percent. 

On Thursday, the stock price of JM Financial surged from Rs 128 to Rs 138.30 and on Friday it touched an intraday high of Rs 143.15. Today, it has surged by 4 percent to Rs 148 during the morning session.