Govt invites bids for sale of BPCL

Shishir Sinha New Delhi | Updated on March 07, 2020 Published on March 07, 2020

The Government has invited ‘Expression of Interest (EoI)’ for selling its entire stake in oil marketing company Bharat Petroleum Corporation Limited (BPCL). 

According to latest shareholding pattern, Government holds 52.98 per cent (over 114.91 crore shares). The Government intends to disinvest this holding along with transfer of management control to a strategic buyer. However, this does not include BPCL’s equity shareholding of 61.65 per cent in Numaligarh Refinery Limited (NRL) and management control thereon. The shareholding of BPCL in NRL will be transferred to a Central Public Sector Enterprise (CPSE) operating in the Oil & Gas sector.

Last date for EoI submission

According to Preliminary Information Memorandum (PIM), last date for submission of EoI is May 2. The PIM will assist potential bidder to evaluate acquiring the stake, accordingly submit an EoI. This will be used for pre-qualifying the interested parties (IPs) in accordance with eligibility criteria and disqualification conditions.

“Purchasing the offered stake in BPCL is a unique opportunity for an investing company to acquire management control in a vertically integrated oil and gas company, with investments in refining, marketing, upstream and gas business. BPCL group, comprising of 10 subsidiaries, 24 joint ventures and 12 associate companies, has operations in various business lines in the Hydrocarbon value chain spanning across India as well as overseas,” PIM mentioned. 

Only those IPs who qualify in accordance with these criterion and conditions will be allowed to participate in second stage of the sale process. The qualified IPs will be provided with Request for Proposal (RFP), and providing further details of the company. Thereafter, financial bids submitted by the qualified IPs as per the terms of the RFP will be opened and evaluated as per procedure laid down by the Government and accordingly final bidder will be announced.


Talking about eligibility criteria, PIM made it clear that IP’s minimum net worth should be $10 billion (nearly ₹74 thousand crore). Bidder can participate as sole or as consortium (maximum number of participants should be four4). IP could be private limited company, public limited company, Limited Liability Partnership (LLP), Alternative Investment Fund (AIF), or a company/ a fund incorporated outside India, which is eligible to invest in India under Indian laws. Bid can be made as solo or as consortium.

Management/employees of BPCL can also bid provided employees will have to incorporate a company, which only can submit the EoI, either itself as a Sole IP or as a member of a consortium. Such company must satisfy the minimum net worth criteria as specified 

An IP, which is required to prepare a profit & loss account, must have reported profits (profit after tax) in at least three out of the last five financial years. In the event that the IP is a consortium or a special purpose vehicle, the lead member must have profits (after tax) in at least three out of the last five financial years. 

The Government expects to get over ₹60,000 crore through this sale. The Government has set a target of ₹2.10 lakh crore through disinvestment during 2020-21.



Published on March 07, 2020

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.