Bpcl'S Maiden Public Float Put Off

BPCL said in a statement after its board meeting in New Delhi yesterday that it was deferring the issue on the advice of its lead managers "until market sentiment improves and the opportunity for a good retail response is available".

On September 2, the BPCL board and the company's merchant bankers had finalised a premium of Rs 265 for the Rs 10 share. Earlier, in August, the price band approved was between Rs 275 and Rs 290, but had to be scaled down following poor stock-market sentiment.

The BPCL scrip opened at Rs 270 and closed at Rs 283 on the BSE on Friday. In the past one year, BPCL stock prices' high and low were Rs 385 and Rs 220, respectively.

Sources said the company may enter the capital market sometime early next year. They point out that the company will require time to get its first half-yearly results for 1996-97 audited. The audited results will then have to be filed with the Registrar of Companies (RoC) and later it have to be submitted to Sebi. They said these formalities would take two-three months only after which BPCL can tap the market.

The company is also planning to raise Rs 200 crore through short-term deposits.