Dull response to BPCL sale may derail divestment goal

Investors are not showing much interest in the sale of the government’s 53% stake in Bharat Petroleum Corp. Ltd (BPCL), which is expected to fetch the Centre around ₹45,000 crore. The privatization process could thus well be derailed, said investment bankers aware of the divestment process.

“Till a year ago, global energy majors were holding discussions for the BPCL stake sale. However, given the current situation and the muted response, it won’t be surprising if no one bids for BPCL in the final round,” said an investment banker who works on energy deals seeking anonymity.

Till last October, Saudi Aramco, Rosneft, Kuwait Petroleum, ExxonMobil, Shell, Total SA, and Abu Dhabi National Oil Co. were reported to be holding talks with the Centre on BPCL’s stake sale.