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After IPO license Govt weighs sale of part of BPCL instead of full stake amid lower demand here – Business News India

After the poor start of the country’s largest insurer, Life Insurance Corporation (LIC) on the stock market, the government is now looking wary. According to Reuters news agency, the government will not sell the entire stake in Bharat Petroleum Corporation (BBCL). The report quoted government officials as saying that the government may sell up to 20-25 percent of BPCL’s shares. Invitation to bid for the same is under consideration. However, the talks are still in its initial stage.

The whole lot to be sold: So far the government has been aiming to raise $8-10 billion by selling its entire 52.98% stake. Also invited bids for the same. The divestment process has been slow due to Corona.

Three Expressions of Interest (EOI) were received for BPCL. One such offering came from the industry group Vedanta Group led by Anil Agarwal. Apart from Vedanta, private equity firms Apollo Global and ThinkGas, the capital arm of I Squared, are also included.

However, even a partial sale of BPCL is unlikely to be completed in this fiscal year because the process will take more than 12 months. However, the backlash over the sale of BPCL’s shares is a sign of slow progress in the government’s privatization plans. Let us tell you that in 2020, Finance Minister Nirmala Sitharaman announced a plan to privatize most government companies, including banks, mining companies and insurance companies. However, this was not possible.

Related news

LIC’s misfortune: LIC was doomed in the stock market on Tuesday. LIC is listed on the stock exchange with a decrease of more than eight percent on the issue price. The share of the company is listed in BSE at Rs 872 per share against the issue price of Rs 949. Whereas, LIC shares were listed on NSE at Rs 867.20. This is Rs 77 less than the issue price.

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