Govt expects Rs 80,000 crore from BPCL divestment

The Central authorities is anticipating the divestment of state-owned refiner Bharat Petroleum Corporation Ltd (BPCL) to internet the exchequer over Rs 80,000 crore, primarily based on a valuation at a big premium to present costs, in keeping with sources.
The authorities has obtained expressions of curiosity for the refiner from Vedanta Ltd and two world personal fairness funds. The sale of the federal government’s 52.98 per cent stake in BPCL is a key a part of the federal government’s Rs 1.75 lakh crore disinvestment goal for this fiscal.
“We are expecting a price of at least Rs 700-750 per share including a control premium given that the share price has previously reached close to Rs 540,” stated an official conscious of developments. An acquisition worth of Rs 700 per share would equate to a premium of over 60 per cent on the closing worth of Rs 433 for BPCL shares on Friday.
The official famous that the worth of BPCL belongings was considerably larger than what a worth of Rs 700-750 per share would point out. The authorities has indicated that it expects to finish BPCL’s stake sale course of within the first half of the 2021-22 fiscal 12 months.

BPCL has concluded the required step of promoting its stake in Numaligarh Refinery Ltd, which the federal government had introduced wouldn’t be a part of the disinvestment of BPCL.
Industry analysts stated a valuation of Rs 700 or larger wouldn’t be stunning, provided that India is the fastest-growing marketplace for petroleum merchandise on the earth. However, getting a excessive valuation could also be tough at the moment as refining margins are down globally.