Government bid for 53% stake in BPCL

BPCL has 15,178 petrol pumps, 6011 LPG distribution agencies, 51 bottling plants, aviation fuel market share of 20% in the country

Any private company with a net worth of over $ 10 billion can bid

BPCL's market cap is Rs 87,388 crore: government stake at current price stands at Rs 46,000 crore

New delhi date. March 7, 2020, Saturday

The government, which is leading the country's largest privatization bid, on Saturday called for a 52.98 per cent stake in Bhartiya Petroleum Corporation Limited (BPCL) to sell its stake.

BPCL is India's second largest oil refining company. The company owns 52.98% stake in the company. That means the government is going to sell its entirety.

Finance Minister Nirmala Sitharaman is targeting a disinvestment of Rs 2.1 lakh crore for the financial year 2020-21. Achievement of this target requires disinvestment of BPSL.

According to documents issued by the Department of Investment and Public Asset Management (DIPAM), a bid has been called for purchase of 52.98 per cent stake of BPCL by May 2, 2020.

As per the government announcement, the management of BPCL will also be entrusted with 52.98% share purchase company. It is worth mentioning that BPCL holds 61.65% stake in Nomaligarh Refinery Limited. The NRL's stake will be sold to a government-owned oil and gas company. The bidding process will be completed in two stages.

In the first phase, the Express of Interest has been convened. Any private company with a net worth of over $ 10 billion can bid to buy BPCL. Due to this privatization process, no government company can bid. BPCL accounts for 25% of India's oil market.

BPCL's market cap is Rs 87,388 crore. At present, the government stake is valued at Rs 46,000 crore. BPCL has 15,178 petrol pumps across the country and 6011 LPG distribution agencies. There are also 51 bottling plants. Aircraft fuel accounts for 20% of its market share.