BPCL sells entire stake in Numaligarh refinery for Rs 9,876 cr

BPCL on Friday said it has sold its entire 61.5% stake in Numaligarh Refinery (NRL) in Assam to a consortium of Oil India and Engineers India and government of Assam for Rs 9,876 crore.

Oil India (OIL) acquired 39,84,36,929 equity shares, or 54.16% stake in NRL. Following the transaction, OIL's total stake in NRL has increased to 80.16%.

Engineers India (EIL) bought 3,21,46,957 equity shares, or 4.37% stake, in NRL. EIL's move is aimed at diversification into downstream oil & gas operations.

The remaining 2.29 crore equity shares have been transferred to Government of Assam for Rs 499.99 crore.

Before the transaction, BPCL held 61.65% stake, Government of Assam held 12.35% stake and OIL held 26% stake in NRL.

NRL is primarily engaged in the business of refining of petroleum products having revenue of Rs 14,073 crore in FY 2020. NRL is the largest customer of OIL's crude produced from its North Eastern fields. The acquisition is expected to improve the synergy in OIL's portfolio. The 3 MMTPA NRL has been conferred the status of Mini Ratna PSU.

Shares of OIL rose 0.72% to end at Rs 118.45 on BSE. OIL is a state-owned Navratna under the administrative control of India's Ministry of Petroleum and Natural Gas. As of 31 December 2020, the Government of India held 56.66% stake in OIL.

Shares of EIL fell 0.61% to close at Rs 73.70 on BSE. EIL provides design, engineering, procurement, construction, and integrated project management services primarily for oil and gas and petrochemical industries. The Government of India owned 51.32% stake in company as on 31 December 2020.

Shares of BPCL gained 1.27% to end at Rs 424.25 on BSE. BPCL operates in refinery and marketing activities, which includes downstream petroleum sector. The Government of India held 52.98% stake while Life Insurance Corporation of India (LIC) held 5.58% in BPCL as of 31 December 2020.

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