Vedanta Confirms Submission Of Bid To Buy Entire 53% Stake In BPCL

On Wednesday, Vedanta Group confirmed putting in a preliminary expression of interest (EoI) for buying government's nearly percent stake in Bharat Petroleum Corp Ltd (BPCL).

Vedanta's interest in the state-owned fuel retailer is because of synergies with its existing oil and gas business.

"Vedanta's EoI for BPCL is to evaluate potential synergies with our existing oil and gas business," the company spokesperson said in a statement. "The EoI is at a preliminary stage and exploratory in nature."

Global and domestic companies were invited by the government to submit their expressions of interest (EoI) for its 52.98 percent stake in Bharat Petroleum Corp Ltd (BPCL) by Monday's deadline.

"Strategic disinvestment of BPCL now moves to the second stage after multiple expressions of interest have been received," tweeted Finance Minister Nirmala Sitharaman on Monday without mentioning the number of bids received or the names of the bidders.

According to a PTI report, citing four industry officials, 3-4 bids were made but did not include supermajors Saudi Aramco, BP and Total or even Mukesh Ambani's Reliance Industries.

According to a Times of India report citing government sources, Anil Agarwal's Vedanta Group and two overseas funds are among suitors for BPCL.

BPCL will give the buyer ownership to 15.33 percent of India's oil refining capacity and 22 percent of the fuel marketing share.

Privatisation of BPCL is essential is part of the government aim to mean the record disinvestment target of Rs 2.1 lakh crore for the current financial year.

Shares of the company have declined 7.5 percent since the bidding closed on Monday.