The government is looking to raise around ₹90,000 crore from the privatization of Bharat Petroleum Corp. Ltd (BPCL) at about double the valuation the stock is trading at, as the Centre seeks to benchmark its price to some of its publicly traded rivals, an official said.
The government’s target price for its 52.98% stake is also based on the value of BPCL’s assets, the government official said, requesting anonymity.
“If anybody thinks that the government will do the BPCL valuation only on the basis of its share price, then they are wrong. The government has to look at the asset valuation also. It will also have to look at the share price of the companies in the peer group,” he said.
