Govt Gives Bidders Data Access For $7-billion Bharat Petroleum Sale

India has allowed bidders access to the financial data of Bharat Petroleum Corp. as the government moves ahead with plans to sell its entire stake in the country’s second-biggest state refiner, according to people familiar with the matter.

The data room has been open since the last week of April and some bidders have held meetings with BPCL management, said one of the people, who asked not to be identified as the talks are private.

Shares in BPCL erased losses in Mumbai after the Bloomberg News report, rising as much as 3% to their highest level since March 16. The government's 53% stake in the refiner is valued at about Rs 50,900 crore ($6.9 billion) based on Friday’s closing price.

The BPCL privatization, which could be the country’s biggest, is crucial for India. The government needs to raise capital to make up the fall in tax revenues as the pandemic hit the economy. Finance Minister Nirmala Sitharaman said last month the plan to raise about $23 billion from selling stakes in state-run companies, including BPCL, is still on course despite the fresh wave of coronavirus infections.

The recent Covid-19 outbreak could still slow down the sale process, one of the people said. A representative for the finance ministry declined to comment, while a representative for BPCL didn’t immediately respond to requests for comment.

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