BPCL on Friday said it has sold its entire 61.5% stake in Numaligarh Refinery (NRL) in Assam to a consortium of Oil India and Engineers India and government of Assam for Rs 9,876 crore.
Oil India (OIL) acquired 39,84,36,929 equity shares, or 54.16% stake in NRL. Following the transaction, OIL's total stake in NRL has increased to 80.16%.
Engineers India (EIL) bought 3,21,46,957 equity shares, or 4.37% stake, in NRL. EIL's move is aimed at diversification into downstream oil & gas operations.
The remaining 2.29 crore equity shares have been transferred to Government of Assam for Rs 499.99 crore.
Before the transaction, BPCL held 61.65% stake, Government of Assam held 12.35% stake and OIL held 26% stake in NRL.
NRL is primarily engaged in the business of refining of petroleum products having revenue of Rs 14,073 crore in FY 2020. NRL is the largest customer of OIL's crude produced from its North Eastern fields. The acquisition is expected to improve the synergy in OIL's portfolio. The 3 MMTPA NRL has been conferred the status of Mini Ratna PSU.
Shares of OIL rose 0.72% to end at Rs 118.45 on BSE. OIL is a state-owned Navratna under the administrative control of India's Ministry of Petroleum and Natural Gas. As of 31 December 2020, the Government of India held 56.66% stake in OIL.
Shares of EIL fell 0.61% to close at Rs 73.70 on BSE. EIL provides design, engineering, procurement, construction, and integrated project management services primarily for oil and gas and petrochemical industries. The Government of India owned 51.32% stake in company as on 31 December 2020.
Shares of BPCL gained 1.27% to end at Rs 424.25 on BSE. BPCL operates in refinery and marketing activities, which includes downstream petroleum sector. The Government of India held 52.98% stake while Life Insurance Corporation of India (LIC) held 5.58% in BPCL as of 31 December 2020.
Powered by Capital Market - Live News
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU