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BPCL stake sale will get a number of bids; Reliance, Aramco skip race

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New Delhi: The authorities on Monday obtained ‘a number of’ bids for purchasing out its stake in India’s second-biggest gas retailer BPCL however billionaire Mukesh Ambani’s Reliance Industries in addition to supermajors Saudi Aramco, BP and Total didn’t make a bid.

Tuhin Kanta Pandey, Secretary, Department of Investment and Public Asset Management (DIPAM), which is dealing with the strategic sale, tweeted that the transaction advisors for the sale of presidency’s 52.98 per cent stake in Bharat Petroleum Corp Ltd (BPCL) have reported receiving “multiple expressions of interest.”

“The transaction will move to the second stage after scrutiny by TA,” he stated.

TA stands for transaction advisor.

“Strategic disinvestment of BPCL progresses: Now moves to the second stage after multiple expressions of interest have been received,” Finance Minister Nirmala Sitharaman additionally tweeted.

Neither of them nonetheless gave the variety of bids obtained or the names of the bidders.

Separately, 4 trade officers stated 3-Four bids have been put in.

Reliance Industries, which was thought of a possible bidder as BPCL would have added 22 per cent gas market share to its fledgling retail enterprise and made it the nation’s primary oil refiner, didn’t put in an expression of curiosity (EoI) on the shut of the deadline on Monday.

Saudi Arabian Oil Company (Saudi Aramco), which had been eager to enter the world’s fastest-growing gas market, too didn’t put in an EoI.

UK’s BP plc and Total of France – who’ve plans to foray into the Indian gas market – had beforehand dominated themselves out of the BPCL race as they didn’t need to add oil refining belongings when the world was transferring away from liquid fuels.

A clutch of personal fairness funds and/or pension funds are stated to have put in an EoI.

Russian vitality big Rosneft-led Nayara Energy, which operates a 20 million tonne oil refinery at Vadinar in Gujarat and in addition has 5,822 petrol pumps, was thought of a possible bidder for BPCL however stories final month had indicated it was now not eager.

Abu Dhabi National Oil Co (ADNOC), which has ambitions for Indian market, too was thought of a possible bidder but it surely wasn’t instantly identified if it had put in an EoI.

Mining billionaire Anil Agarwal is taken into account one other potential bidder given his curiosity within the oil and fuel enterprise with the USD 8.67 billion acquisition of Cairn India.

Sources stated transaction advisors will now consider the bidders to determine in the event that they certainly meet the qualifying standards and would have the monetary muscle to do the acquisition.

This course of could take 2-Three weeks, thereafter request for proposal (RFP) might be issued and monetary bids sought.

At Friday’s closing value of Rs 412.70 on BSE, the federal government’s 52.98 per cent stake in BPCL is value Rs 47,430 crore. Also, the acquirer must make an open supply for purchasing one other 26 per cent stake from the general public, which might value Rs 23,276 crore.

BPCL will give the client possession to 15.33 per cent of India’s oil refining capability and 22 per cent of the gas advertising share.

Privatisation of BPCL is crucial for assembly the document Rs 2.1 lakh crore goal the finance minister has set from disinvestment proceeds within the funds for 2020-21.

BPCL operates 4 refineries in Mumbai (Maharashtra), Kochi (Kerala), Bina (Madhya Pradesh), and Numaligarh (Assam) with a mixed capability of 38.Three million tonne every year, which is 15.Three per cent of India’s complete refining capability of 249.Eight million tonne.

While the Numaligarh refinery might be carved out of BPCL and offered to a PSU, the brand new purchaser of the corporate will get 35.Three million tonne of refining capability – 12 million tonne Mumbai unit, 15.5 million tonne Kochi refinery and seven.Eight million tonne Bina unit.

It additionally owns 17,138 petrol pumps, 6,151 LPG distributor companies and 61 out of 256 aviation gas stations within the nation.

BPCL is India’s second-largest oil advertising firm with a standalone home gross sales quantity of over 43.10 million tonnes and a market share of 22 per cent throughout FY20. It is India’s sixth largest firm by turnover.

Its petrol pumps promote extra gas than the trade common – BPCL pumps promote 124 kilolitres per 30 days as in comparison with the trade common of 116, based on the corporate web site.

The agency additionally has upstream presence with 26 belongings in 9 nations similar to Russia, Brazil, Mozambique, the UAE, Indonesia, Australia, East Timor, Israel and India. It can also be making a foray into metropolis fuel distribution and has licences for 37 geographical areas (GAs).




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