Govt Will Earn Rs 80,000 Crore By Selling Bharat Petroleum To These Private Firms
The divestment of BPCL has been in process for a long time now, and the newest reports are that the Government is expecting a divestment of more than Rs. 80,000 crores. This amount is based on a valuation at a significant premium to current prices.
Read on to find out all the details!
Government Plans To Raise Rs. 80,000 Crores By Selling Off Stake In BPCL
As we all know, the Government is planning to sell off its stake in Bharat Petroleum Corp Ltd (BPCL). The central government owns a controlling stake of 52.98% in the company. Previously, there were reports about the government expecting to raise Rs 90,000 crore at double the current valuation by setting the price of the oil retailer to its rivals.
However, the news is that the Government is expecting Rs. 80,000 crore to be raised from the divestment.
The sale of the stake in BPCL is a part of the Government’s divestment plans for this fiscal year, which is Rs 1.75 lakh crore.
As per an official close to the developments, “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.”
Value Of BPCL Assets Higher; BPCL’s Stake To Be Completed Soon
If the acquisition price is Rs. 700 per share, it would be equal to the premium of more than 60 per cent of the closing price of Rs. 433 for BPCL shares as of Friday.
As per the official, the value of the BPCL assets was quite higher than what is indicated by the price of Rs. 700 to Rs. 750 per share. The sale of the government’s stake in BPCL is expected to be completed in the first half of the 2021-22 fiscal year.
In the financial year 2020-21, Coronavirus and the pandemic situation hit government’s plans to divest its stake in BPCL and Air India. As a revision for FY21, Finance Ministry reduced its divestment target from Rs 2.1 lakh crore earlier to Rs 32,000 crore.
The government intends to complete the divestment latest by July-August, and it has asked the bidders to submit their financial bids in the next two months for the government’s stake sale in national carrier Air India and Bharat Petroleum Corporation Ltd (BPCL).