Bharat Petroleum Corporation Limited (BPCL) chairman Arun Kumar Singh on Monday said that the government intends to complete the divestment of the company by March-end next year.
Responding to a query post the Annual General Meeting (AGM) of the company, Singh said, “the government in many forums said it has intentions to complete the transaction within this fiscal year. As of now, the stated position is by March-end.”
The government is selling its entire 52.98 per cent stake in BPCL for which three expressions of interest (EoIs) including one from billionaire Anil Agarwal-led Vedanta Group have been received.
Earlier this month, Fitch Ratings said uncertainty over the bidder consortiums and process complexity, including valuation, may lead to potential delays in privatisation of India’s second-largest fuel retailer BPCL.
Affirming BPCL’s rating at ‘BBB-‘ with a negative outlook, Fitch said it continues to treat the potential divestment of the company by the Indian government as an event risk.
“Bidders are conducting due diligence, but uncertainty over the bidder consortiums and process complexity, including valuation, may lead to potential delays.”
“We believe the risks of further Covid-19 waves and global oil and gas companies’ increased focus on energy transition lead to additional uncertainty over the timing and valuation of potentially large acquisitions in the sector,” it had said.
BPCL, during the AGM, said it will invest ₹1 trillion ($13.55 billion) over the next five years to strengthen its petrochemicals, renewables and alternatives fuels businesses to de-risk itself from volatility in global markets.
Source: Mint