MUMBAI: BP is looking to sell 8.5% stake in Indian subsidiary Castrol IndiaBSE 6.76 % through a block deal worth Rs1,750 crore on Tuesday. The share sale is happening at an indicative range of Rs 408 – Rs 422.50 per share, a discount of up to 3.5% to Castrol’s Monday closing price. Shares of CastrolBSE 6.76 % India declined 4.5% to Rs 422.45 on Monday.
In May UK’s BP sold 11.5% stake in the lubricant maker to reduce its holding in the company from 70.92% to 59.42% for about Rs 2072 crore.
Shares of Castrol have declined 5% so far this year as against 9.5% rise in Sensex.
Early this year, BP reported its record annual loss of $ 6.5 billion and revealed it is cutting thousands of jobs in an attempt to cope with the oil price slump. BP’s business has also been dealing with the fall-out from the 2010 Gulf of Mexico disaster.
For the quarter ended June 2016, Castrol reported a 12% jump in net profit to Rs 207 crore over the same period last year.
