State-owned Oil and Natural Gas Corp (ONGC) and its subsidiary Hindustan Petroleum Corp (HPCL) have bought out lenders in Petronet MHB Ltd, the firm that owns a petroleum product pipeline in Mangalore, for about Rs 3.71 billion.

A consortium of eight public sector banks held 34.56 per cent stake in Petronet MHB Ltd, where ONGC and HPCL held 32.72 per cent each.

ONGC and HPCL bought 17.28 per cent stake each from lenders, the firms said in separate but almost identical regulatory filings.

The two firms paid Rs 1.85 billion each for acquiring 17.28 per cent more share in Petronet MHB. They now hold 49.99 per cent each in the company that transports petroleum products from Mangalore Refinery. The acquisition is expected to be completed by March 31.

Shares of ONGC declined Rs 1.25, or 1.34%, to settle at Rs 92.05. The total volume of shares traded was 960,140 at the BSE (Friday).

Shares of HPCL declined Rs 7, or 3.42%, to settle at Rs 197.60. The total volume of shares traded was 228,441 at the BSE (Friday).