GOI may revisit BPCL Privatization, Terms of Sale

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GOI may revisit BPCL Privatization, Terms of Sale
25 Apr 2022
4 min read

News Synopsis

A government official has said that the government of India may take a fresh look at BPCL privatization along with revising the terms of sale. The official further said, “We need to go back to the drawing board on BPCL. There are issues in terms of consortium formation, the geopolitical situation, and energy transition aspects.”

The government is planning to sell its entire 52.98% stake in BPCL and has received three expressions of interest (EoI), including one from the Anil Agarwal-led Vedanta Group of investors.

Officials said the shift to green and renewable fuels has made privatization difficult in the current situation. At current market prices, 52.98% of the shares are valued at around Rs 45,000 crore.

Later, three bidders, Vedanta, private equity firm Apollo Global, and Think Gas, a division of I Squared Capital, were allowed to physically inspect assets such as refineries and depots as part of the due diligence process. 

Once the bidder has completed due diligence and the terms of the share purchase agreement have been finalized, the government will need to seek financial bids.

TWN Opinion