Bpcl Dives On Possible Selloff Delay

The share price of Bharat Petroleum (BPCL) plunged today, with the proposed public offer extrapolating into a delay in its divestment process. The shares of the state-run refinery were down by over 4.4 per cent to Rs 267.80 at the end of the day. The scrip hit a high of Rs 277 and low of Rs 268.25, while 3.54 lakh shares changed hands on the BSE.

The BPCL scrip has plunged by 7.7 per cent, from a recent high of Rs 291.50 on June 14, 2002, to the current Rs 269 in the last four trading sessions. Earlier, the scrip surged, following the rumours that the BPCL float may follow its divestment, and also following a hike in petroleum product prices. The scrip, from a recent low of Rs 245.70 on June 5, 2002, had surged by 18.6 per cent in seven trading sessions to a recent high of Rs 291.50 on June 14, 2002.

However, Goldman Sachs has maintained 'market outperformer' rating to the BPCL and HPCL stocks, enthused by the second price hike of petroleum products announced by state-run refineries on June 16, 2002.

Petroleum minister Ram Naik has said on Wednesday that a final decision on the proposed public offer of BPCL would be taken next month. A cabinet note has already been floated on the proposed public offer.

BPCL is planning an issue of 50 crore shares of Re 1 face value (the scrip is currently Rs 10 paid-up), at a premium of Rs 19 per share which will hike the company's equity base by Rs 50-60 crore, and improve its debt-equity ratio before the sell-off.