GP Petroleums Signs Supply Agreement with Hindustan Petroleum Corp

Founded in 1983, GP Petroleums Limited is a key player in the lubricant and petroleum sector in India. Originally concentrating on industrial lubricants under its principal brand IPOL, the company has diversified into automotive, industrial, and specialty oil markets, serving various industries such as automotive, manufacturing, marine, and agriculture. A pivotal moment in its journey was the acquisition by the Gulf Petrochem Group, based in the UAE, which brought in global expertise and investment. 

GP Petroleums Signs Agreement Worth ₹223 Crore With HPCL

On November 29, 2024, GP Petroleums Ltd. announced that it has signed a supply agreement valued at around ₹223 crores with Hindustan Petroleum Corporation Ltd. (HPCL), a government enterprise of India, for the provision of bulk bitumen (VG30).

“We would like to inform you that GP Petroleums Limited (the company or the seller) has entered into a supply agreement for bulk bitumen VG30, dated 29 November 2024, with Hindustan Petroleum Corporation Limited (HPCL or the buyer), a government of India enterprise, for the supply of VG30 bulk bitumen in accordance with IS 73-2013 at various locations as required by HPCL,” GP Petroleums stated in a regulatory announcement.

Conditions of the Agreement

The arrangement guarantees the supply of approximately 50,000 metric tons of bitumen to different sites as needed by HPCL. This contract, which is not with an associated entity, was established on an arm’s length basis. The initial duration of the agreement is set for one year, with the option for HPCL to extend it for an additional year at their discretion.

GP Petroleums Share Price Performance

GP Petroleums Ltd. shares are currently priced at ₹64.99 each, reflecting an increase of over 7% today. The stock reached a peak of ₹68.00 per share. This surge is attributed to the recent ₹223 crore agreement with Hindustan Petroleum Corporation Ltd. (HPCL).

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.