With ONGC paying only a modest premium for a 51.1% stake in HPCL, limiting the dilution in the fair value to just 6%, the counter gained 3.3% on Monday to close at Rs 199.95. ONGC will pay close to Rs 37,000 crore to buy the stake. Meanwhile, the HPCL stock lost 3.6% on Monday to close at Rs 401.75 apiece. The price \u2014 Rs 474 per share \u2014 at which the deal has been transacted is a 9% premium to HPCL\u2019s 26-week average price of Rs 435 and a near 14% premium over the Friday\u2019s close of Rs 416.55. \u201cWe compute a modest negative impact of Rs 8 per share for ONGC from the proposed transaction, valuing HPCL at Rs 344\/share,\u201d analysts at Kotak Institutional Equities wrote. The clarity on HPCL transaction sets the stage for a reversal of ONGC\u2019s sharp under-performance against the rally in global crude prices, they added. \u201cThe ONGC stock has under-performed dated Brent crude price by about 20% over the past six months, amid speculations of significant premium being ascribed to acquire HPCL and necessity of an open offer for HPCL\u2019s minorities, they wrote. The price would imply a multiple of around 12 times on consolidated earnings for FY18-19, analysts observed. ONGC will not be making an open offer for HPCL\u2019s minority shareholders. ONGC is required to seek the approval of minority shareholders, once the share purchase agreement has been executed. This is as per the provisions for related-party transactions under Section 188(3) of the Companies Act, 2013.