Shares of Bharat Petroleum Corporation Ltd (BPCL) on Tuesday zoomed over 6 per cent in early trade after the company said that it will exit Numaligarh refinery in Assam.
BPCL said it will exit Numaligarh refinery in Assam by selling its entire stake to a consortium of Oil India Ltd and Engineers India Ltd for ₹ 9,876 crore.
The sale of Numaligarh Refinery Ltd clears the way for privatisation of India's second-largest fuel retailer.
On BSE, the shares touched 52-week high value of ₹ 482.40, up 6.04 per cent.
Similarly, on NSE, the scrip surged 5.96 per cent to 52-week high value of ₹ 482.40.
In keeping with the Assam Peace Accord, the government had decided to keep Numaligarh Refinery Ltd (NRL) in the public sector. As part of this, BPCL was to sell its entire 61.65 per cent stake to state-owned firms.
A consortium of Oil India Ltd, Engineers India Ltd, and the government of Assam expressed interest in buying the stake and the BPCL board on Monday approved the sale.
"The board of directors of BPCL at the meeting held on March 1, 2021, has approved the proposal for sale of entire equity shares of 445.35 crore held by BPCL in NRL to a consortium of OIL and EIL and to government of Assam," the firm said in a filing to the stock exchanges.
The consortium of OIL and Engineers India Ltd is likely to acquire 49 per cent and the rest 13.65 per cent will be sold to the government of Assam.