BPCL tumbles after Govt extends EoI deadline to 16 Nov

BPCL slumped 7.34% to Rs 357.85 after the Government of India (GoI) extended the deadline for submitting initial bids to buy state-owned oil marketing company.

"In view of further requests received from the interested bidders (IBs) and the prevailing situation arising out of COVID-19 pandemic, the last date for submission of EoIs is further extended to 16th November, 2020," GoI said in a statement.

The government had issued a preliminary information memorandum document (PIM) on 7 March 2020 for inviting expression of interest (EOI) for strategic disinvestment of 52.98% stake held by Government of India in BPCL. This is the fourth time that the government has extended the deadline for the submission of EoIs this year.

BPCL operates in refinery and marketing activities, which includes downstream petroleum sector. The Government of India holds 52.98% stake in BPCL as of 30 June 2020.

The PSU OMC reported a 93% jump in standalone net profit to Rs 2076.17 crore on 41% decline in revenue from operations to Rs 50,616.92 crore in Q1 June 2020 over Q1 June 2019.

On a year-to-date (YTD) basis, the stock has declined 27.85% while the benchmark S&P BSE Sensex lost 7.63% during the same period.

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