RIL may buy stake in BPCL: Initial bids for privatization of Bharat Petroleum Corporation Limited (BPCL) will be closed today i.e. on Monday. The market is eyeing Mukesh Ambani’s Reliance Industries for this. There are reports that RIL may bid in BPCL. At the same time, it is also discussed that big companies like BP of Britain, Total of France and Saudi Aramco are unlikely to bid. Explain that the government is selling its entire 52.98 per cent stake in BPCL, the second largest oil refinery and marketing company in India. The current deadline is 16 November.
Look at RIL
The market is eyeing Mukesh Ambani-led Reliance Industries Limited. She can bid for BPCL. RIL operates the world’s largest oil refining complex at Jamnagar in Gujarat and is expanding into the retail business. Reliance recently appointed Sarthak Behuria, former chairman of BPCL and also appointed Sanjeev Singh, former chairman of Indian Oil Corporation (IOC), a few weeks ago. These appointments are currently being linked to bidding in BPCL.
Last day of bidding
The Department of Investment and Public Asset Management (DIPAM Secretary) Tuhin Kanta Pandey told the news agency last month that the deadline would not be extended anymore. Sources said that BP, Total, Rosneft or its affiliates and Saudi Arabian oil company (Saudi Aramco) are not very keen to bid on the price. At a time when the world is moving away from conventional fuels, the value of US $ 10 billion seems to be high. The Covid-19 epidemic has also reduced the demand for traditional fuels.
How much time to collect the bid amount
Sources said that BPCL earns a profit of around Rs 8,000 crore annually and at this pace, it will take 8-9 years for the investor to recover more than Rs 70,000 crore of the bid. This acquisition seems to be more beneficial for companies that can increase profitability through business as well as operational efficiencies and synergies with existing businesses.