BPCL gains on additional stake buy in Petronet CCK, hike in FII limit

The board has approved approved the proposal to acquire Petronet India Ltd's 26% equity in PCL at a total cost of Rs 78.60 crore.

Shares of Bharat Petroleum were up nearly 2% at Rs 935 on the Bombay Stock Exchange after the company said it has bought additional stake in Petronet CCK Ltd (PCL).

The company in a release said that the board of directors at its meeting held on April 11 has approved the proposal to acquire Petronet India Ltd's 26% equity in PCL at a total cost of Rs 78.60 crore.

PCL is a subsidiary company promoted by Bharat Petroleum Corporation Ltd and Petronet India Ltd and operates a petroleum product pipeline from Kochi to Karur in Tamil Nadu via Coimbatore for transportation of petroleum products.

Further, the board plans to seek Shareholders' consent by way of postal ballot for increasing the ceiling of Investment by Foreign Institutional Investors in the shareholding of the BPCL from 24% up to 49% in one or more tranches subject to regulatory authorities approval.

The stock opened at Rs 927 and touched a high of Rs 939. At 10:20am, over 444,000 shares were traded on both the stock exchanges.