Privatisation of BPCL priced between $6.9 bn and $10.3 bn

18 Mar 2021 Editorial Team

Credit Suisse informed the media that the reserve price is expected to be approximately Rs 500 per share, and post dividend (Rs 50-60 per share), the government's stake is worth $6.9 billion. Post the open offer, the maximum outflow would be $10.3 billion, the global wealth manager added.

It has also been noted that the buyer can halve the capital expenditure (capex) at BPCL and sell non-core assets to the tune of $4 billion. Among the bidders, Apollo Global has done a deal of this size, while Vedanta has partnered with Centricus.

The firm said that steady-state earnings before depreciation, interest, taxes and amortisation (EBITDA) for BPCL could be $2 billion to $2.5 billion. The higher end of range is possible when the potential acquirer is able to reduce refining costs, increase the productivity of marketing outlets, and increase non-fuel revenues.

The macro is also improving for the refining sector, with inventories now down for both diesel and gasoline, and the cracks have started improving.

The investment banking company said that there is ample scope to boost steady-state EBITDA by $450 million. According to Credit Suisse, refining cost reduction can boost EBITDA by $150 million, higher non-fuel EBITDA at marketing outlets can add $100 million, and higher footfalls can add $200 million.

BPCL kicked off with project Nishchay in the financial year 2016 to promote non-fuel revenues, but it gave up on most of the initiatives in two to three years. Even the current app SmartDrive for customers does not have real-time data at the outlets, and hence the active users are limited.

Image Source

Also read: BPCL disinvestment may see PSU participation

Also read: BPCL divestment bidding to become competitive

Also read: BPCL privatisation gets three bids

Your next big infra connection is waiting at RAHSTA 2025 – Asia’s Biggest Roads & Highways Expo, Jio World Convention Centre, Mumbai. Don’t miss out!

The acquisition cost for Bharat Petroleum Corporation Ltd (BPCL) as part of the privatisation process is being estimated between $6.9 billion and $10.3 billion, according to Switzerland-based investment bank and financial services firm Credit Suisse. Credit Suisse informed the media that the reserve price is expected to be approximately Rs 500 per share, and post dividend (Rs 50-60 per share), the government's stake is worth $6.9 billion. Post the open offer, the maximum outflow would be $10.3 billion, the global wealth manager added. It has also been noted that the buyer can halve the capital expenditure (capex) at BPCL and sell non-core assets to the tune of $4 billion. Among the bidders, Apollo Global has done a deal of this size, while Vedanta has partnered with Centricus. The firm said that steady-state earnings before depreciation, interest, taxes and amortisation (EBITDA) for BPCL could be $2 billion to $2.5 billion. The higher end of range is possible when the potential acquirer is able to reduce refining costs, increase the productivity of marketing outlets, and increase non-fuel revenues. The macro is also improving for the refining sector, with inventories now down for both diesel and gasoline, and the cracks have started improving. The investment banking company said that there is ample scope to boost steady-state EBITDA by $450 million. According to Credit Suisse, refining cost reduction can boost EBITDA by $150 million, higher non-fuel EBITDA at marketing outlets can add $100 million, and higher footfalls can add $200 million. BPCL kicked off with project Nishchay in the financial year 2016 to promote non-fuel revenues, but it gave up on most of the initiatives in two to three years. Even the current app SmartDrive for customers does not have real-time data at the outlets, and hence the active users are limited. Image Source Also read: BPCL disinvestment may see PSU participation Also read: BPCL divestment bidding to become competitive Also read: BPCL privatisation gets three bids

Real Estate

05 Sep 2025

Vitizen Hotels Signs Deal at Manyata Tech Park

Vikram Kamats Hospitality, as part of its ongoing expansion in key metropolitan markets, announced that its material subsidiary, Vitizen Hotels, has signed a long-term lease agreement for a 45-key hotel property at Manyata Tech Park, Bengaluru.Strategically located in the city’s prominent IT hub, the property is well-positioned to serve corporate travelers, business professionals, and long-stay guests. The addition aligns with the company’s asset-light growth model, leveraging long-term leases to expand its footprint in high-demand urban markets.The hotel is expected to strengthen the comp..

Infrastructure Transport

05 Sep 2025

CONCOR Signs MoU with BPIPL to Operate Container Terminal at Bhavnagar Port

Container Corporation of India (CONCOR) has signed a Memorandum of Understanding (MoU) with Bhavnagar Port Infrastructure (BPIPL) on September 4, 2025, in New Delhi to operate and maintain the upcoming container terminal at the northside of Bhavnagar Port, Gujarat.BPIPL had earlier entered into an agreement with the Gujarat Maritime Board (GMB) in September 2024 for the port’s development. Under this arrangement, 235 hectares of land has been leased to BPIPL for 30 years, with provision for expansion by an additional 250 hectares.The new terminal is expected to significantly enhance logistic..

Infrastructure Transport

05 Sep 2025

Concord Launches India’s First Indigenous Zero-Emission Rail Propulsion

Concord Control Systems (CCSL), a leader in embedded electronics and critical rail technologies, has announced the development of India’s first fully indigenous zero-emission propulsion system, marking a significant step toward the country’s railway electrification and net-zero goals for 2030.Powered by Lithium Iron Phosphate (LFP) batteries and featuring a DC chopper-based drive, the propulsion system eliminates idling losses common in diesel engines, offering higher efficiency, lower costs, and zero emissions.What sets this innovation apart is its completely indigenous design. Except for..