Shares of Chennai-based Hindustan Oil Exploration Company (HOEC) surged over 10 per cent on the stock exchanges on Wednesday after Ashok Goel Trust and Dhoot Industrial Finance picked up a total of 24.75 per cent stake from the promoters, Eni UK Holding.

According to sources, HOEC’s management has been considering major initiatives to effect a turnaround in the company, which reported a net loss of over ₹122 crore in financial year 2014-15. Bringing in new investors is seen as crucial for the company which has oil and gas exploration activities currently underway in Assam and Gujarat.

Stake-buy from promoter

Earlier in March, Ashok Goel, MD of Essel Propack, through his family trust Ashok Goel Trust, in concert with Rohit Dhoot through Dhoot Industrial Finance, acquired 24.75 per cent stake from Eni, which held a little over 47 per cent stake as promoter.

Following the sale of equity, Eni’s holding in the company will come down to about 22 per cent.

HOEC is exploring a well at the Palej block jointly with Gujarat State Petroleum Corporation (GSPC). It is also exploring and developing a block in Assam jointly with Indian Oil Corporation and Oil India.

Off-market transaction

Ashok Goel Trust in a statement to the stock exchanges said, “We have together, with persons acting in concert, acquired 3.23 crore equity shares representing 24.75 per cent voting rights in the Target Company through an off-market transaction. The transaction was completed on March 11, 2016.” However, it is understood that Ashok Goel Trust would not take up a management role in the company.

On Wednesday, shares of HOEC ended at ₹32.80, with 9.33 per cent on the BSE.

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