Shares of state-owned Oil and Natural Gas Corp (ONGC) today surged more than 6 per cent on the bourses, following the acquisition of 51.11 per cent stake in oil refiner HPCL.

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HPCL, however, dropped 4 per cent on the bourses.

On January 20, ONGC announced the acquisition of government's entire 51.11 per cent stake in oil refiner HPCL for Rs 36,915 crore, paying a premium of over 10 per cent.

Shares of ONGC today opened on a bullish note at Rs 199, then surged 6.40 per cent to an early high of Rs 206 on the BSE.

On the NSE, the stock opened at Rs 198, then jumped to an early high of Rs 204.40, up 5.52 per cent from the previous closing price.

On the other hand HPCL stock witnessed selling pressure and touched a low of Rs 400.55 on the BSE, down 3.84 per cent from its previous closing price and on NSE it fell to an early low of Rs 409.55.

ONGC will pay Rs 473.97 per share for 77.8 crore shares of the government in Hindustan Petroleum Corp Ltd (HPCL)

The price it is paying is 14 per cent higher than Friday's closing price of HPCL and over 10 per cent of the 60 -day weighted average of the scrip.

The transaction, which will help the government cross its annual sell-off (disinvestment) target for the first time ever, has been executed through an off-market deal.