Hindustan Petroleum Corporation Ltd (HPCL) on Thursday said it has increased its stake in Petronet MHB with the acquisition of 17.28 per cent stake in the company for Rs 185.38 crore.

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Post the acquisition, the shareholding of HPCL in Petronet MHB will be about 49.99 per cent.

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"The company has entered into a share purchase agreement dated February 27, 2020 with consortium of 8 nationalised banks, who hold equity shares in Petronet MHB Ltd, for acquisition of 9,48,22,632 equity shares of the target entity aggregating to 17.28 per cent of the paid up equity share capital of the target entity at a price of Rs 19.55 per share," HPCL said in a regulatory filing.

It said that the acquisition is expected to be completed during the quarter ending March 31, 2020.

Petronet MHB Ltd was incorporated in 1998 on common carrier principle to provide petroleum product transportation facility from the Mangalore Refinery at to the oil marketing company terminals at Hassan and Devangonthi.

The company, an associate unlisted company of HPCL, has a net worth of Rs 796.30 crore as of March 31, 2019 and revenue from operations of Rs 158.44 crore for the year ended March 31, 2019.

In a separate filing, public sector lender Bank of Baroda said that it has sold its entire 4.90 per cent stake in Petronet MHB for Rs 52.56 crore.