BPCL investment in Bharat Oman Refineries is a positive; Divestment possible by September, says Anil Singhvi

Anil Singhvi said that DIPAM Secretary has clearly stated that BPCL Divestment will happen anytime in the first half of FY22. Government is slowly making progress with the BPCL divestment. Singhvi said that the Non-core businesses of BPCL are being separated from the company as it has many such investments. Singhvi said that BPCL has investments in 2 or 3 Government companies; their stake will be sold going forward

Anil Singhvi said that DIPAM Secretary has clearly stated that BPCL Divestment will happen anytime in the first half of FY22. Government is slowly making progress with the BPCL divestment. Singhvi said that the Non-core businesses of BPCL are being separated from the company as it has many such investments. Singhvi said that BPCL has investments in 2 or 3 Government companies; their stake will be sold going forward. Stake in Numaligarh Refinery has already been sold off. Singhvi said cash received via stake sales will be distributed as dividend to shareholders.

The Market Guru said BPCL going forward to buy a stake in Oman from its partner worth Rs 2400 cr is a little surprising, while they are selling off their non-core assets to smoothen the divestment process. Buying stake from its partner seems a different strategy, says Singhvi. So the big question is why is BPCL buying stake in this Joint Venture?

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Anil Singhvi said it is important to understand why BPCL is going for this investment. Investors need to understand this for better clarity. Selling stake in non-core assets ahead of Divestment is normal procedure followed by companies. This investment by BPCL is a joint Venture done by BPCL with Oman. There are many contenders who are interested in Buying stake in BPCL which includes many local as well as international players.

BPCL ने भारत ओमान रिफाइनरी में खरीदी हिस्सेदारी...

अनिल सिंघवी- कंपनी के लिए ये अच्छी खबर… यह डेवलपमेंट विनिवेश की ओर ही एक कदम है। विनिवेश की ओर तेजी से बढ़ रही सरकार... सितंबर तक या उससे पहले विनिवेश हो सकता है पूरा#EditorsTake #BPCL #BPCLDisinvestment @AnilSinghvi_ pic.twitter.com/8n6D0uF12m

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Singhvi said that Aramco name is also leading in the name of Potential Buyers who are interested in Buying stake in BPCL. Aramco is interested in the Oil & Gas sector and is looking to invest in an Indian company.

Singhvi said that Saudi Arabia and Oman don’t share a healthy relationship. So it is important for BPCL to buy stake in their business over there. So it is important for BPCL rather than getting investments from Local companies in Oman, they should have their own investments.

Anil Singhvi said Aramco seems to be interested in Buying stake in BPCL. The Indian company is entirely focussed on increasing or decreasing investments in areas that they are interested ahead of Divestment procedure. Government is progressing towards BPCL Divestment and there are strong chances that it may happen in the first half of 2021.

Hence Anil Singhvi said investors must consider this investment as a step further towards the Divestment process.

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