Shares of Bharat Petroleum fell almost 5 percent to 392.35 rupees each on the BSE.
Shares of BPCL or Bharat Petroleum Corporation Limited fell nearly 5 percent on Tuesday, a day after the government said it received multiple offers for the privatization of the country’s second-largest fuel retailer. Shares of Bharat Petroleum fell 20.35 rupees, or 4.93 percent, to 392.35 rupees each on the BSE during Tuesday’s session, reversing direction after opening strongly at 415.95 rupees compared to its previous close of 412.70 rupees. (Bharat Petroleum Stock Tracking)
BPCL’s strategic divestment progresses – now moving to second stage after multiple expressions of interest have been received. @PIB_India@FinMinIndiahttps://t.co/bDNx6gw3d2
– Nirmala Sitharaman (@nsitharaman) November 16, 2020
As of 1:36 p.m., BPCL shares were trading 3.71 percent lower at Rs 397.40 each, below the benchmark S&P BSE Sensex index, which was up 0.61 percent.
(Read Also: Center Gets Good Response On Sale Of Oil Stake In Bharat)
“BPCL’s strategic divestment is moving forward: it now moves to the second stage after multiple expressions of interest have been received,” Finance Minister Nirmala Sitharaman said on Twitter.
Transaction advisers for the sale of the government’s 52.98 percent stake in Bharat Petroleum have reported receiving “multiple expressions of interest,” said Department of Investment and Public Asset Management (DIPAM) secretary Tuhin Kanta. Pandey. “The transaction will move to the second stage after scrutiny by TA (transaction advisor),” he said.
At Friday’s closing price of Rs 412.70, the government’s total 52.98 percent stake in Bharat Petroleum Corporation is worth Rs 47,430 crore.
Any buyer will have to make an open offer to buy another 26 percent from the public as well, which would cost Rs 23,276 crore.
The privatization of BPCL is essential for the government to meet its record divestment target of Rs 2.1 lakh crore in the current financial year.
BPCL is the second largest petroleum trading company in the country with an independent domestic sales volume of more than 43 million tons and a 22 percent market share.
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