Shares of Bharat Petroleum Corporation (BPCL) turned choppy and slipped into the red on Tuesday following weakness in the overall market.
Fitch Ratings on Monday said uncertainty over the bidder consortiums and process complexity, including valuation, may lead to potential delays in the privatisation of BPCL.
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On the other side, reports said that BPCL has created a separate platform for its liquefied petroleum gas business that runs the Union Government’s subsidised domestic cooking gas cylinder scheme.
This will help BPCL’s buyer to ring-fence and operate the marquee scheme which is seen as a positive.
The Centre has approved the sale of its entire stake in BPCL, along with the transfer of management control to a strategic buyer.
As of June end, the government’s stake in BPCL stood at 52.98 percent.
The successful buyer will reportedly not only have a controlling stake in BPCL but will also get access to a 25.77 percent market share in India’s fuel retailing segment.
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Besides, Arun Kumar Singh has been appointed as Chairman and Managing Director of the company till October 31, 2022, or until further orders.
At 1042 IST, BPCL shares were trading 0.8 percent lower at Rs 486.80 apiece on the BSE.