Mumbai: State-run Bharat Petroleum Corporation Ltd (BPCL) will pay a dividend to its shareholders after the sale of its entire stake in Assam-based Numaligarh Refinery is completed, a company official said today.
"A portion of the proceeds will go to shareholders as we have a track record of rewarding shareholders. While a portion will also go towards tax, the rest will go towards completing the Bharat-Oman stake sale," said N Vijaygopal, director finance, BPCL.
On Monday, ahead of its privatization, BPCL board approved sale of its 61.65% stake in Numaligarh refinery for ₹9,875 crore.
Shares of BPCL hit a one-year high of ₹482.4 apiece, up 6% on the BSE, after its board approved to sell the firm's holding in Numaligarh Refinery Ltd (NRL).
According to Motilal Oswal Securities, BPCL can announce an incremental dividend of ₹38 apiece after the stake sale. The company has already announced an interim dividend of ₹16 a piece in the third quarter of FY21.
The consortium of Oil India Ltd and Engineers India Ltd will acquire 49%, and the rest 13.65% will be sold to the government of Assam.
The sale of NRL is considered to be the first step towards disinvestment of BPCL. The sale of BPCL stake is key in achieving government's ₹1.75 lakh crore disinvestment target set for the upcoming financial year.
Anil Agarwal-led Vedanta Group and private equity players like Apollo Global, and I Squared Capital have expressed their interests in BPCL.
On 18 February, state-run Oil India (OIL) and Engineers India (EIL) said they will jointly bid for acquiring BPCL's 61.65% stake in Numaligarh Refinery.
The Assam government will increase its stake to 26%, while Engineers India Ltd will be a new shareholder with a minority stake, and the refinery will become a subsidiary of Oil India which currently holds 26% stake in the refinery.
BPCL will also buy 36.62% equity shares from Oman Oil, in Bharat Oman Refineries Ltd (BORL).
“We have concluded the discussions with OQ SAOC, and the deal will be finalized in the next 10 days," Vijayagopal had said on 9 February.
BORL built and operates a 7.8 million tonne oil refinery at Bina in Madhya Pradesh. BORL is a key refinery for BPCL as it helps the company serve the northern and central regions in the country and receives crude supply by a cross-country pipeline from Vadinar to Bina.
Click here to read the Mint ePaperMint is now on Telegram. Join Mint channel in your Telegram and stay updated with the latest business news.