HPCL due diligence to start from first week of August

NEW DELHI: Due diligence exercise for the privatisation of oil marketing and refining PSU, Hindustan Petroleum Corp Ltd (HPCL) will begin early next month.
According to a decision taken by an Inter-Ministerial Group, suitors for the government''s 34.01 per cent stake in HPCL including Royal/Dutch Shell, Reliance Industires, Essar Oil, Saudi Aramco and Petronas of Malaysia will begin due diligence from first week of August, sources associated with disinvestment process said.
Bidders would be given 15-days to complete the due diligence which will include visits to HPCL refineries at Mumbai and Vizag and select LPG installations.
A data room for the due diligence is being readied.
The IMG on Tuesday also issued an information memorandum on sale of India''s second largest oil refining and marketing company to the over half a dozen bidders in fray.
"The information memorandum has been e-mailed to the bidders and schedule for the due diligence intimated," they said.
Sources said the IMG also finalised the bidding schedule and the whole process is being targetted to be completed by year end.
Sources also said the management has been asked to clarify about certain conditions pertaining to employees welfare including the medical benefits currently being offered by the company.
Incidentally, the medical benefits for employees are administered by a trust.
The government would divest 34 per cent stake in the company through strategic sale while another five per cent would be set aside for employees.