InvestorQ : With Vedanta bidding for BPCL, does it look like Anil Agarwal may land up with another priced PSU company?
vaishnavi mhatre made post

With Vedanta bidding for BPCL, does it look like Anil Agarwal may land up with another priced PSU company?

Answer
image
vidhya Laxmi answered.
1 week ago
Follow

There is first unofficial confirmation coming from reports that Anil Agarwal’s Vedanta group may have been one of the key bidders for the assets of BPCL, where the government is planning to sell out its 52.98% residual stake.

In the last few days, a number of large players had opted out. Domestic hydrocarbon giant, Reliance, had stayed out of the race while global majors like Total of France, British Petroleum and Saudi Aramco had also backed out of bidding for BPCL.

Apparently, Vedanta has already submitted the expression of interest or EOI for the government's 52.98% in BPCL. For Vedanta which had already acquired Cairn India, this is a logical extension of refining and oil marketing capacity. There are clear synergies.

It is reported that 4 players have submitted EOIs, including Vedanta and the final decision may be made soon with regard to the second round. For the Indian government, sale of BPCL stake is crucial to get anywhere close to the divestment target of Rs.210,000 crore.

One factor that appears to have put off the bidders is that the winner will have to make an open offer to buy additional 26% from the public. That would entail a total investment outflows of Rs.75,000 crore now; taking the payback to nearly 10 years.

1 Views