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BPCL stock gains 4% as sources say EoI for stake sale may not be extended

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BPCL shares rose over 4 percent on Friday after government sources told CNBC-TV18 that hopefully the expression of Interest (EoI) timeline for the firm's stake sale will not need a further extension

BPCL stock gains 4% as sources say EoI for stake sale may not be extended
Bharat Petroleum Corp Ltd (BPCL) shares gained over 4 percent on Friday after government sources told CNBC-TV18 that hopefully the expression of Interest (EoI) timeline for the firm's stake sale will not need a further extension. The competition will be key in BPCL stake sale and will help the government get a better price, they added.
The stock rose as much as 4.2 percent to the day's high of Rs 340.45 per share on BSE. However, year-to-date, the stock is down nearly 32 percent.
On September 30, the government extended the deadline for submitting initial bids to buy the state-owned firm to November 16.
"In view of further requests received from the interested bidders and the prevailing situation arising out of COVID-19 pandemic, the last date for submission of EoIs (Expression of Interest) is further extended to 16th November,” the government said in a statement.
Meanwhile, news agency Reuters cited sources saying India’s efforts to privatise refiner BPCL could spill over into the next fiscal year and global players such as Saudi Aramco and Russia’s Rosneft may not participate in the bid.
Brokerages, however, remain wary of the stock. CLSA, in a recent report, reiterated its 'sell' call on the stock. It said that quick privatisation of BPCL may prove challenging, adding that the expectation of a hefty premium to current market price may be misplaced.