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Oil refining and marketing company Hindustan Petroleum Corporation Ltd (HPCL) on Wednesday said that its board has approved proposal to buyback upto 10 crore shares, representing 6.56 per cent of paid-up equity capital of the company, at Rs 250 per share.

The maximum buyback price represents a 33.88 per cent premium over HPCL's current share price on bourses. The company's share gained 0.54 per cent to close at Rs 186.75 a piece on BSE on Wednesday.

In a regulatory filing on the BSE, HPCL said that the buyback remain at Rs 2,500 crore but the number of shares could be higher than maximum buyback shares (10 crore) if equity shares are bought below the maximum buyback price of Rs 250.

Through the buyback, HPCL's minority shares holders could hope to get rewarded. The details of the buyback will be finalised by the company in next two days.

The company's board also approved HPCL's second quarter numbers. As per these, it posted 290 per cent year-on-year rise in net profit at Rs 2,975.83 crore during the July-September quarter.

The Q2 total income of the company declined 6.59 per cent YoY to Rs 62,439.86 crore.