Does BPCL propose to pay a special dividend to its shareholders with the funds realized from the sale of the Numaligarh Refinery?

The BPCL Finance Director, N Vijaygopal, has confirmed that Bharat Petroleum would pay a special dividend to its shareholders after the stake sale in Numaligarh Refinery Ltd to a consortium of Oil India and Engineers India. The deal was recent concluded and BPCL is expected to realize a sum of Rs.9,875 crore from the sale of the stake in the Numaligarh Refinery.

On Monday, BPCL had approved the sale of its entire 61.65% stake in Numaligarh Refineries forRs.9,875 crore, which was a pre-condition ahead of its privatization. The Assam government will continue to acquire an additional 13.65% stake in NRL, taking its total stake in the Numaligarh Refinery to 26%. BPCL stock price has already touched a 1-year high price ahead of this special dividend payment.

It is estimated that apart from the Rs.16 declared by the company in Q3, it could declare an additional dividend of up to Rs.38/share just to distribute the proceeds of the sale of stake in Numaligarh Refinery.