In the country’s biggest ever privatisation drive, the Union government on Saturday(Mar 7) invited bids for sale of its entire 52.98 per cent stake in India’s second-biggest oil refiner BPCL. Expressions of interest (EoI) for the strategic sale of BPCL have been invited by May 2, as per the bid document by the department of investment and public asset management (DIPAM).
As per the government’s Invite for Expression of Interest for disinvestment in Bharat Petroleum Corporation Limited (BPCL), the prospective bidders should have a minimum net worth of $10 billion as of Saturday.
PSUs “are not eligible to participate” in the privatisation, the offer document confirmed/
The EoI submissions can be made till May 2, whereas investor queries will be entertained till April 4.
Another condition pertains to a maximum of four members are permitted in a consortium, and the lead member must hold 40 per cent in proportion. Other members of the consortium must have a minimum $1 billion net worth.
The EOI allows changes in the consortium within 45 days, though the lead member cannot be changed.
The GoI proposes to disinvest its entire shareholding in BPCL comprising 1,14,91,83,592 equity shares held through the Ministry of Petroleum and Natural Gas, which constitutes 52.98 per cent of BPCL”s equity share capital, along with the transfer of management control to the strategic buyer (except BPCL”s equity shareholding of 61.65 per cent in Numaligarh Refinery Limited (NRL) and management control thereon).
The shareholding of BPCL in NRL will be transferred to a Central Public Sector Enterprise operating in the oil and gas sector under the Ministry and accordingly is not a part of the proposed transaction.