HPCL's share buyback price is at a premium of 34 per cent to its Wednesday's closing price.Shares of Hindustan Petroleum Corporation (HPCL) rose nearly 10 per cent to hit an intraday high of Rs 204.05 after its net profit more than doubled in September quarter and company announced a share buyback proposal.

The state-run oil refiner and retailer after market hours on Wednesday announced that its profit more than doubled to Rs 2,477.45 crore from Rs 1,052.31 crore during the corresponding quarter a year ago.HPCL's revenue from sale of products however declined 7.3 per cent to Rs 61,340.30 crore versus Rs 66,164.62 during the same period last year.HPCL's average gross refining margin, a measure of how much the company earned by refining a barrel of crude oil, during the six months ended September 30, 2020 was $2.58 per barrel as against $1.87 per barrel during the corresponding period of previous year.The company's board of directors approved a proposal to buyback 10 crore equity shares of the company at Rs 250 per share aggregating to Rs 2,500 crore translating into 6.56 per cent of the total paid up equity share capital, HPCL said in a stock exchange filing.HPCL's share buyback price is at a premium of 34 per cent to its Wednesday's closing price of Rs 186.75.

The details of process and timelines of share buyback proposal will be released by the company by November 6, HPCL added in a stock exchange filing.At 12:51 pm, HPCL shares were trading 9.34 per cent higher at Rs 204.20, outperforming the Sensex which was up 1.56 per cent.