State-run Bharat Petroleum Corp. Ltd (BPCL) is looking to complete its privatization process this financial year, if all goes well and covid-19 pandemic does not push the process back, said a top company official. The government, which holds a 52.98% stake in BPCL, is in the process of divesting its holdings, as part of its plan to raise a record ₹1.75 trillion from disinvestment proceeds in FY22. On 10 April, the government had given access to BPCL’s data to prospective bidders.
So far, mining-to-oil conglomerate Vedanta and private equity firms Apollo Global and I Squared Capital’s arm Think Gas are in the race to buy the government’s stake in BPCL. “There were a few questions which we are in the process of addressing. And then there are a few questions that only the government of India can answer,” said N. Vijayagopal, director, finance, BPCL, after the March quarter earnings call. He said the final bidders will have to visit BPCL’s facilities, which is not possible now due to restrictions on international travel in view of the second wave of the covid-19 infections in India.
“If things go as planned, these processes can be completed by July and the interested companies can submit the financial bids by August. If the sale and purchase agreement (SPA) is signed by September, we could take another five-six months to complete the deal,” said Vijayagopal, adding that this is his personal view and not of the government. As part of the privatization process, BPCL sold its 61.65% stake in Assam-based Numaligarh Refinery Ltd (NRL) for ₹9,875 crore to a consortium of Oil India Ltd (OIL) and Engineers India Ltd (EIL) (49%) and the remaining 13.65% to the Assam government in March.