BPCL dips 5% on profit-booking as govt extends bidding deadline by 2 months

Shares of Bharat Petroleum Company (BPCL) slipped five per cent to Rs 432 in the early morning trade on the BSE on Thursday right after the federal government for the 3rd time extended the deadline for bidding for the privatisation of India’s next-most significant oil refiner by two months to September 30.

In the previous two months, the inventory of the point out-owned oil advertising and marketing firm rallied 23 per cent on the report that the global oil giants are demonstrating desire in the firm. In comparison, the S&P BSE Sensex was up five.six per cent through the similar time period.

“In watch of the additional requests gained from the Interested Bidders and the prevailing circumstance arising out of Covid-19, final day and time for submission of expression of desire (EoI) are extended up to September 30, 2020,” the Office of Expense and Public Asset Administration (DIPAM) reported in a notice. Simply click Below FOR Launch

Initial, the EoI submission deadline was May possibly two, but on March 31 it was extended up to June 13. On May possibly 26, it was extended to July 31 and now it has been extended till September 30. The Cupboard had in November final calendar year approved the sale of government’s whole 52.ninety eight per cent stake in BPCL.

“Queries to DIPAM ranged from fundamentals these as BPCL’s credit score and previous funds expenditure (capex) to advance kinds like treasury shares treatment, restrictive clauses, bondholder consent, board powers, funds commitments, stakeholder relations, and so on. This implies that a bunch of gamers may well be interested, like critical kinds,” analysts at Emkay World wide Economic Products and services reported in a observe dated July 16.

“Reliance Industries can be a critical contender becoming mostly web debt absolutely free now and perhaps include BP also as a associate. Other gamers are Aramco, ADNOC, Rosneft, and ExxonMobil, as per the experiences. With RIL deal not progressing, Aramco may well now glance at BPCL aggressively,” the brokerage reported additional.

At 09:30 am, BPCL was buying and selling 4 per cent decrease at Rs 435 on the BSE, as in comparison to a .sixty five per cent rise in the S&P BSE Sensex. All-around 4.7 million equity shares had been modifying palms on the counter on the NSE and BSE.