NEW DELHI: In the nation’s glorious ever privatisation force, the government on Saturday invited bids for sale of its entire 52.98 per cent stake in India’s second glorious oil refinerBharat Petroleum Corp Ltd(BPCL).
Expressions of curiosity (EoI) for the strategic sale of BPCL had been invited by May per chance 2, as per the deny list by the department of funding and public asset management (DIPAM).
“The govt. of India is proposing strategic disinvestment of its entire shareholding in BPCL comprising of 114.91 crore equity shares, which constitutes 52.98% of BPCL’s equity allotment capital alongside with transfer of management retain watch over to a strategic purchaser (other than BPCL’s equity shareholding of 61.65% in Numaligarh Refinery Puny),” it said.
NRL stake will seemingly be offered to a divulge-owned oil and gasoline firm.
The bidding will seemingly be a two-stage affair, with qualified bidders within the first expression of curiosity portion being asked to bear a monetary deny within the second spherical.
PSUs “are no longer eligible to participate” within the privatisation, the offer list said.
Any interior most company having a networth of $10 billion is eligible for bidding and consortium of no bigger than four firms will seemingly be allowed to deny, it said.
As per the bidding standards, the lead member of the consortium must maintain 40 per cent stake and others must like a minimal networth of $1 billion.
Changes in consortium are allowed within 45 days however the lead member can’t be changed, it added.
BPCL will give buyers ready glean entry to to 14 per cent of India’s oil refining capability and about one-fourth of the fuel market allotment on this planet’s fastest-rising energy market.
BPCL has a market capitalisation of about Rs 87,388 crore and the government stake at fresh prices is price about Rs 46,000 crore. The successful bidder will additionally favor to bear an initiating offer to other shareholders for acquiring one more 26 per cent at the equal label.
Privatisation of BPCL is required for meeting the file Rs 2.1 lakh crore target finance minister Nirmala Sitharaman has role from disinvestment proceeds within the Funds for 2020-21.
BPCL operates four refineries in Mumbai (Maharashtra), Kochi (Kerala), Bina (Madhya Pradesh) and Numaligarh (Assam) with a blended capability of 38.3 million tonnes each year, which is 15 per cent of India’s entire refining capability of 249.4 million tonnes.
Whereas the Numaligarh refinery will seemingly be carved out of BPCL and offered to a PSU, the calm purchaser of the corporate will glean 35.3 million tonnes of refining capability.
BPCL additionally owns 15,177 petrol pumps and 6,011 LPG distributor companies within the nation. Apart from, it has 51 LPG (liquefied petroleum gasoline) bottling vegetation.
The corporate distributes 21 per cent of petroleum merchandise consumed within the nation by volume as of March this year and has bigger than a fifth of the 250 aviation fuel stations within the nation.
The govt. has appointed Deloitte Touche Tohmatsu India LLP as its transaction handbook for the strategic disinvestment task.