Exclusive: BPCL divestment likely at strong valuations, Anil Singhvi says

Exclusive: BPCL divestment likely at strong valuations, Anil Singhvi says

BPCL Disinvestment: A big and exclusive news on Bharat Petroleum Corporation Limited (BPCL) disinvestment plans of the Narendra Modi government has just broken! The Department of Investment and Public Asset Management (DIPAM) has received tremendous response from the interested bidders and expectation of this state-run company’s stake getting sold at a high price have increased. Zee Business Executive Editor Swati Khandelwal has this detailed report! 

Zee Business has been informing the channel viewers on the response that BPCL is getting from interested bidders. Citing sources, Khandelwal said that the company is expected to get divested at high valuations. 

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Khandelwal said that financial bids from the interested bidders will soon be invited. Sources have indicated that the valuation could be between Rs 440 and Rs 480 per share, she added. 

At 1:50 pm, the shares of BPCL were trading at Rs 402.95 on NSE, up almost 1 per cent from the previous close on Thursday.  

BPCL due diligence is ongoing. She said that the government’s expectations are between Rs 500 and Rs 550 per share and something around Rs 500 could be acceptable to government and the bidders. The government has a 53 per cent stake in this company. 

Three companies have already submitted their bids as Zee Business previously informed channel viewers. These are Vedanta, Think Gas and Apollo Global.  

She further said that the valuations around Rs 500 are gaining strength. The response has been good and soon we could see financial bids coming.  

Anil Singhvi’s view on this development 

The Managing Editor said that the response for BPCL have been great and it is likely that the valuations will be attractive. He said that the stock price of BPCL are expected to reach Rs 440 by this month. 

Singhvi said that it was a given that the divestment in this company will happen at attractive valuations. This is Modi Government’s first “strategic divestment” exercise in any large PSU. The government is likely to set a benchmark at which this could be sold. Since the government’s priority is to sell the PSU at a premium, it will do everything in its control to do, so that the other divestments in line get the right direction. 

This divestment will set the course for other PSUs, Singhvi said. 

He said that he also expected the process to be expeditious. 

Another interesting thing is an open offer. It is expected that it will come, the Managing Editor said. 

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Anil Singhvi to investors 

Singhvi said that all those investors who have BPCL shares in their portfolio will get an opportunity to sell their shares at a premium price.

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