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Received three preliminary bids for BPCL, says Oil Minister

  • Uncategorized
  • Dec 28, 2020

The three preliminary has been collected by the government, bids to buy a managing stake in India’s second largest fuel retailer Bharat petroleum corporation Ltd. Oil minister Dharmendra Pradhan announced. The bidding process is very fine and transparent because it is one of the fair means to give or to take something because the probability of buying is equally stabilized. Mining to oil conglomerate Vedanta held on November 18 validated putting in an expression of interest for buying the government’s 52.98% stake in BPCL. The other two bidders are said to be worldwide funds, one of them being Apollo Global management. Coal mining is very high priced process and it needs a lot of wealth and human efforts to do the functions very appropriately. It should also keep in mind that environment doesn’t get harm because while extracting in the process many gases are produced and there is a chance of lot of pollution. Lot of interest is there, High authorities said at a webinar series on ‘The road to Atmanirbhar Bharat’ organized by swarajya Magazine. DIPAM has recently informed market about this. Three parties have given EOL for the bidding process.

At Wednesday's trading price of Rs 385 on BSE, the government's 52.98 percent stake in BPCL is valued just over Rs 44,200 crore. Also, the obtainer would have to make an open and transparent offer for buying another 26 per cent stake from the public, which would cost about Rs 21,600 crore. Vedanta's interest in BPCL stems from its USD 8.67 billion acquisition of oil producer Cairn India almost a decade back. The company produces oil from oilfields in Rajasthan which is utilized in refineries such as those operated by BPCL to convert them into petrol, diesel and other fuels. Sources said transaction advisors have begun calculating the EoIs to discover if the bidders meet the certified criteria and have the financial potential to do the acquisition.

This process may take two-three weeks and many more, afterwards a request for proposal (RFP) will be issued and financial bids to look for. BPCL will give the buyer holdings to 15.33 percent of India's oil refining capacity and 22 percent of the fuel marketing share. BPCL utilize four refineries in Mumbai (Maharashtra), Kochi (Kerala), Bina (Madhya Pradesh), and Numaligarh (Assam) with a mixed capacity of 38.3 million tonnes per annum, which is 15.3 percent of India's total refining capacity of 249.8 million tonnes. While the Numaligarh refinery will be chiseled out of BPCL and sold to a PSU, the brand new buyer of the company will get 35.3 million tonnes of refining capacity 12 million tonnes Mumbai unit, 15.5 million tonnes Kochi refinery and 7.8 million tonnes Bina unit. It also owns 17,355 petrol pumps, 6,156 LPG distributor agencies and 61 out of 256 aviation fuel stations BPCL is India's second-largest oil marketing company with a standalone domestic sales volume of over 43.10 million tonnes and a market share of 22 per cent during FY20. It is India's sixth-largest company by turnover.