InvestorQ : Has there been any positive progress on the BPCL divestment program and how soon does it look likely?
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Has there been any positive progress on the BPCL divestment program and how soon does it look likely?

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Riya Dwivedi answered.
5 months ago
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While the government has got initial expressions of interest it is looking at something more concrete to be available as an offer. However, the government is confident that the real interest in BPCL could come from a consortium of global oil majors and investment funds jointly willing to pay top dollars for the government stake in BPCL.

It has already been confirmed by Mr. Anil Agarwal of Vedanta group that he had submitted an initial bid for BPCL. In addition, others like Apollo Global and I-Squared Capital have also evinced interest. Oil producers from Middle East and Russia’s state owned Rosneft were keen on the assets of BPCL but had developed second thoughts over the open offer requirement which would have added on to their cash flow burden.

The government proposes to sell its entire 53% stake in BPCL for a consideration of $6.5 billion and exit the company altogether. This will be one of the test cases of strategic divestment as it is more of privatization and less of a mere divestment of stake. A good response to the BPCL stake sale will also be crucial to divestment revenue targets.

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