InvestorQ : What are the bids for BPCL that has been received till date?
vidhya Laxmi made post

What are the bids for BPCL that has been received till date?

sarah Leo answered.
3 years ago

The Minister for Petroleum, Dharmendra Pradhan, has confirmed that the government had received 3 binding bids to buy a controlling stake in BPCL of 52.98% from the government of India. The bids had finally closed in November after repeated postponements.

The biggest and most popular name is Vedanta part of Anil Agarwal’s business empire. It is one of the major companies to have put in a bid, while the other two are estimated to be PE funds. While one of them is Apollo Global, the name of the third bidder is not known.

Vedanta which is currently based out of London, has been eyeing the refining business of BPCL for a long time to add to its existing oil extraction business which it acquired from Cairn India. In the past, Vedanta has picked up several commodity names like BALCO, Hindustan Zinc, Sesa Goa and recently Cairn India.

This bid is to buy the 52.98% stake of the government of India in BPCL, which will reduce the total holding of the government in BPCL to nil. The transaction will now move to the second stage after scrutiny.

The government has a very aggressive disinvestment target of Rs.210,000 crore for the current fiscal year and the BPCL sale is an important step in that direction, if the government has to get anywhere close. At current prices, the government stake is worth Rs.45,000 crore.

However, the catch is that the acquisition will also entail 26% open offer to minority shareholders and hence the total outlay for the stake could get closer to Rs.75,000 crore. That had actually put off some of the bidders like Reliance, Total and Aramco.