InvestorQ : What was the reason for the sharp correction in BPCL on 04 August?
Rashi Mehra made post

What was the reason for the sharp correction in BPCL on 04 August?

Answer
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sarah Leo answered.
2 months ago


BPCL has been under pressure for some time after the government opted to put off its divestment. On Tuesday, BPCL tanked 6.4% after reports that the divestment of government's stake in BPCL would be put off beyond FY21. However, the DIPAM secretary has clarified that the divestment would go through, although it looks tough in the current environment.

The reports had suggested that the BPCL stake sale could go beyond FY21 as delay in inviting bids to pick stake in BPCL could delay the entire process of divestment. Government has already extended the bidding deadline to Sep 30, but reports suggested that 6 months just will not be enough to finalize the bells and whistles. Government is looking to hive off its entire stake of 52.98% in BPCL.