A consortium of Engineers India (EIL) and Oil India (OIL) has decided to bid for 61.65% stake of Bharat Petroleum Corporation (BPCL) in Numaligarh Refinery (NRL).
The bid is to be submitted through a formal process. EIL is taking the minority stakeholding. EIL's move is aimed at diversification into downstream oil & gas operations.The exact percentage of the stake of OIL and EIL will depend on the extent of Right of First Offer (ROFO) to be exercised by Government of Assam which already holds 12.35% 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. Currently, BPCL holds 61.65% stake, Government of Assam holds 12.35% stake and OIL holds 26% stake in NRL.
Shares of Engineers India added 2.14% to Rs 76.20 on BSE. Engineers India (EIL) provides design, engineering, procurement, construction, and integrated project management services primarily for oil and gas and petrochemical industries. The Government of India owned 51.50% stake in company as on 31 December 2020.
Shares of Oil India rallied 2.87% to Rs 125.30 on BSE. Oil India 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 the company.
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