State-owned oil refining and marketing major Bharat Petroleum Corporation Limited (BPCL) fell 2 per cent on Thursday, a day after the government approved a divestment plan in the oil marketing company. At 11:45 am, the BPCL stock had slipped from its intraday high of Rs. 549 and was trading at Rs. 534, lower by 2 per cent on the BSE. Among the other listed divestment candidates, Shipping Corporation has shaved off 4.3 per cent to trade at Rs. 65 and Container Corporation of India (Concor) was flat with a positive bias at Rs. 580.
Finance Minister Nirmala Sitharaman announced late on Wednesday that the Cabinet Committee on Economic Affairs (CCEA) had approved the sale of government stake in five major central public sector enterprises (CPSEs): BPCL, Shipping Corporation of India (SCI), Container Corporation of India (CONCOR), THDCIL, and NEEPCO.
The Finance Minister also said the government will hand over management control in each of these companies to the strategic buyer.
BPCL’s subsidiary, Numaligarh Refinery Ltd (NRL) in Assam, will be hived off to another government oil company due to its geo-strategic importance.
Among the five companies, BPCL is the most lucrative as it has attractive valuations and stable business outlook despite the government’s plan to segregate the Numaligarh refinery, according to analysts.