Shares of the state-run petroleum major Bharat Petroleum Corp. Ltd. (BPCL) fell nearly five per cent a day after the deadline for submitting bids for the strategic sale of the company ended.
Investor sentiments dampened as major energy giants including Reliance Industries, Saudi Aramco, BP gave the bidding process a miss and did not submit Expressions of Interest for the 52.98 per cent of the stake on sale.
Shares of BPCL on the BSE plunged 4.9 per cent to touch an intra-day low of Rs 392.35 per share.
At 10.54 a.m., it was at Rs 397.70, lower by 3.63 per cent from its previous close.
The government on Monday said that multiple EoIs have been received for divestment of Centre’s stake in the company.
Sources, however, said that several global players did not pitch in for the stake sale. Total and Russia’s Rosneft also did not bid for the stake sale.
The lack of interest among the major players comes on the back of the poor oil demand globally amid the pandemic and low oil prices.
The transaction will now move to the second stage after scrutiny by the transaction adviser, said a tweet from the Twitter handle of the Secretary of the Department of Investment and Public Asset Management (DIPAM).
“For strategic disinvestment of BPCL, multiple expressions of interest have been received by the Transaction Advisor. The Transaction will move to the second stage after scrutiny by TA,” it said.
Finance Minister Nirmala Sitharaman also said that the BPCL disinvestment process is making progress.
“Strategic disinvestment of BPCL progresses: Now moves to the second stage after multiple expressions of interest have been received,” she said in a tweet.
Sources said that 3-4 four bids have come in for the oil giant.
As the deadline for submitting the EoIs for privatisation of BPCL closed on Monday and there has so far been a buzz of mixed interest amongst the bidders.
RIL and Abu Dhabi National Oil Company (ADNOC) were anticipated to submit their bids. While RIL has not put in a bid as per sources, it could not be ascertained whether ADNOC has gone ahead with a bid.
ADNOC already has footprint in India as it is the only overseas company that has crude stored in Indian caverns.
The lack of interest among major players comes on the back of the poor oil demand globally amid the pandemic and low oil prices.
The EoIs came on Monday after four extensions of the deadline for submission of bids.
The Centre has put its entre 52.98 per cent stake in the BPCL on the block.
Also Read: As deadline arrives, Govt expects quality bids for BPCL
