Govt withdraws offer to sell its entire 53% stake in BPCL

NEW DELHI: The government on Thursday withdrew its offer to sell its entire 53 per cent stake in BPCL, saying that majority of bidders have expressed their inability to participate in the current privatisation process due to prevailing conditions in the global energy market.

The government had planned to sell its entire 52.98 per cent stake in Bharat Petroleum Corporation Ltd (BPCL) and invited Expressions of Interest (EoIs) from bidders in March 2020. At least three bids came in by November 2020. However, the privatisation was stalled after two bidders walked out over issues such as lack of clarity in fuel pricing, with just one bidder left in the fray.

The Department of Investment and Public Asset Management (DIPAM) said in response to the invitation, multiple EoIs were received from interested parties. Qualified Interested Parties (QIPs) had initiated due diligence of the company. However, the multiple COVID-19 waves and geopolitical conditions affected industries globally, particularly the oil and gas industry. “Decision on the re-initiation of the strategic disinvestment process of BPCL will be taken in due course based on review of situation,” it added. Shares of BPCL settled at Rs 324.25, down 0.54 per cent over its previous close on the BSE.

Majority of bidders have expressed their inability to participate in the privatisation process

Are you in Chennai? Then click here to get our newspaper at your doorstep!