BPCL board approved stake sale in NRL.
Bharat Petroleum Corporation Limited (BPCL), a public sector oil marketing company, said that by the end of March 2021, the stake sale in Numaligarh Refinery will be completed. This is being considered as the first step towards disinvestment of government stake in BPCL.
Board approval to sell more than 45 crore equity shares
BPCL has informed Bombay Stock Exchange that in its meeting held on 1 March 2021, the proposal to sell 45,35,45,998 equity shares has been approved. These shares of Numaligarh Refinery are with BPCL at the rate of Rs 10 per equity share. Also told that if the Assam government does not agree to buy 13.65 per cent stake, then the entire 61.65 per cent stake will be sold to the consortium of Oil and EIL. The oil marketing company has already said that it will complete the sale process of its entire stake in Numaligarh Refinery by the end of March 2021.
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The sale of NRL is considered as the first step towards disinvestment of BPCL. In the biggest privatization of the country so far, the central government will sell its entire 52.98 per cent stake in BPCL. The government had earlier indicated that it hopes to complete the privatization of BPCL by the first half of the beginning of April (2021-22). This sale is crucial to achieve the disinvestment target of 1.75 lakh crore set for 2021-22. Private equity players such as Anil Agarwal-led Vedanta Group and Apollo Global, and I Square Capital have already expressed interest in BPCL. BPCL will own about 15.33 per cent of India’s oil refining capacity and 22 per cent of the fuel marketing share.
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NRL plans to have a refining capacity of 9 million tonnes per annum
Numaligarh Refinery is looking to increase its refining capacity from 3 million tonnes to 90 million tonnes per year at an investment of 22,594 crore. The project is expected to be completed by 2024. According to BPCL, the consolidated total income to the company in the financial year ended 31 March 2020 was Rs 14,244.29 crore. At the same time, the company’s total assets were valued at Rs 5,292 crore in the same period. Apart from this, the net profit of the company during the quarter ended December 2020 increased by 120 per cent to Rs 2,777.6 crore. The company achieved a net profit of Rs 1,260.6 crore in the same period a year ago.