IMG meet to decide BPCL plans

After inviting expression of interest (EoI) for divesting the government stake in Hindustan Petroleum Corporation Ltd (HPCL), the disinvestm...

After inviting expression of interest (EoI) for divesting the government stake in Hindustan Petroleum Corporation Ltd (HPCL), the disinvestment ministry is now ready to flag off the process of disinvesment in another oil marketing PSU Bharat Petroleum Corporation Ltd (BPCL).

The disinvestment secretary Pradip Baijal told The Indian Express that “the ministry is holding interministerial group (IMG) meeting on February 13 with the ministry of petroleum to discuss the disinvestment of BPCL.”

Baijal said that “while discussing the details of public offering, the meeting will also decide the amount of stake offloaded through domestic issue and American Depository Reciepts (ADR)/Gross Depository Reciepts (GDR).

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Among other things, the IMG is also likely to discuss the time-frame for calling bids for BPCL advisors. Overall the government has decided to offload 35 per cent stake through public offering including domestic issue as well as ADR/GDR while five per equity would be offered to employees at a concessional rate. Following this, government equity in BPCL would come down to 26 per cent.

Meanwhile, keeping in line with the decision of CCD, the disinvestment ministry has also invited expression of interest for sale of 34 per cent stake in HPCL to a strategic partner.