The federal government’s stake in BPCL was price about Rs 60,000 crore in November 2019, across the time the stake sale proposal was accredited by the Union Cupboard.
The federal government has acquired ‘three preliminary bids’ for its controlling stake in India’s second-largest gas retailer Bharat Petroleum Company (BPCL), petroleum minister Dharmendra Pradhan stated on Wednesday. Division of funding and public asset administration (Dipam) secretary Tuhin Kanta Pandey informed FE that short-listing of corporations from the preliminary bids have been completed after scrutiny by the transaction advisor. Monetary bids are anticipated in February, he added.
The final date for submission of expression of curiosity (EoI) was November 16.
Vedanta, India arm of Anil Agarwal-controlled Vedanta group, is the one agency to have confirmed presence on the EoI stage of the BPCL sale course of. PTI reported on Wednesday that two world funds, together with Apollo World Administration, are “stated to be” within the fray.
“The shortlisted corporations shall be given knowledge room entry and contracts copy, signal confidential enterprise, discipline queries, take a look at the belongings and would possibly go to a few of the amenities of BPCL.. All of the painstaking work is now starting,” Pandey informed FE.
The stake sale, anticipated to be accomplished this fiscal was earlier seen to fetch round `70,000 crore to the exchequer. The BPCL sale is more likely to be single largest element of the Centre’s disinvestment receipts this fiscal, which is more likely to be far under the bold Rs 2.1 lakh crore budgeted.
The federal government’s stake in BPCL was price about Rs 60,000 crore in November 2019, across the time the stake sale proposal was accredited by the Union Cupboard. Nonetheless, the precise receipts will depend upon valuation and consideration of a premium (ONGC had purchased the Centre’s stake in HPCL in FY18 at a premium of 14% to the inventory’s value). As per the Sebi takeover code guidelines, an acquirer firm has obligation to launch a compulsory open supply for an extra 26% stake within the goal firm.
The BPCL inventory closed at Rs 384.45 on the BSE on Wednesday, up 1.4% from earlier closing value. Vedanta share value rose 2.1% to shut at Rs 124.1 throughout the day.
BPCL owns and operates 4 refineries in India and 15% share of the nation’s 250 million tonne refining capability; it additionally has 17,000-strong retail gas outlet community within the nation, and a over quarter of the retail market share. Its privatisation is seen as important for the federal government to spice up its non-debt capital receipts this fiscal, when all income streams are faltering as a consequence of deep financial droop attributable to Covid-19 pandemic.
Vedanta, a part of London-headquartered Vedanta Assets, having a diversified enterprise portfolio straddling minerals and power, had acquired a 58.5% stake in Cairn India for $8.67 billion in 2011. Vedanta Group had acquired majority stake in Bharat Aluminium Firm (Balco), then a PSU, in 2001; it has additionally over time acquired a controlling stake in Hindustan Zinc, beginning with 26% stake it purchased in 2002-03. A Supreme Court docket resolution is being awaited on the sale of the federal government’s residual stakes in these firms.
Non-public corporations have a share of over 1 / 4 of the nation’s crude oil output, greater than 90% it comes from Vedanta-owned Cairn belongings in Rajasthan, Andhra Pradesh and Gujarat. The remaining 74% home crude is produced by state-run ONGC and Oil India. To make certain, about 85% of the India’s crude oil wants are nonetheless met by imports.
BPCL operates 4 refineries in India, Mumbai Refinery, Kochi Refinery, BORL-Bina Refinery (Bharat Oman Refineries Restricted, a three way partnership between BPCL and Oman Oil Firm) and Numaligarh Refinery with a mixed crude oil refining capability of 38.3 million tonnes each year. BPCL’s stake in Numaligarh refinery shall be bought to a different CPSE oil agency individually.
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source https://www.mcxfree.tips/3-eois-for-bpcl-says-dharmendra-pradhan-monetary-bids-in-february/
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