InvestorQ : What do you see as the outcome of the BPCL bids opening on Tuesday?
vaishnavi mhatre made post

What do you see as the outcome of the BPCL bids opening on Tuesday?

vidhya Laxmi answered.
3 years ago

We will really have to wait for the bids to be officially opened on 15 December. Tuesday will be a crucial day for BPCL as the high-powered committee will evaluate preliminary bids received from bidders like Vedanta, Apollo Global and I-Squared Capital.

It may be recollected that Deloitte had been appointed by the DIPAM as the transaction advisor and as part of their role they will offer the committee an evaluation of the 3 bids received and also provide their recommendation to facilitate the final decision.

The bids, it may be remembered, pertain to the government's 52.98% balance holdings in BPCL. Vedanta submitted its bid through a special purpose vehicle (SPV). For Vedanta, the BPCL business has always been of interest as it already has taken over Cairn India and BPCL provides the perfect forward integration to its upstream oil business.

Let us also know about the other two bidders. I-Squared Capital is a private equity firm focused on global infrastructure assets bidding while Apollo Global is an international alternative assets fund manager. The stock price of BPCL plunged nearly 20% since the strategic sale was first approved more than a year ago.