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

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

Infrastructure Urban

05 Nov 2025

TBO Tek Q2 Profit Climbs 12%, Revenue Surges 26% YoY

TBO Tek Limited one of the world’s largest travel distribution platforms, reported a solid performance for Q2 FY26 with a 26 per cent year-on-year increase in revenue to Rs 5.68 billion, reflecting broad-based growth and improving profitability.The company recorded a Gross Transaction Value (GTV) of Rs 8,901 crore, up 12 per cent YoY, driven by strong performance across Europe, MEA, and APAC regions. Adjusted EBITDA before acquisition-related costs stood at Rs 1.04 billion, up 16 per cent YoY, translating into an 18.32 per cent margin compared to 16.56 per cent in Q1 FY26. Profit after tax r..

Infrastructure Energy

05 Nov 2025

Northern Graphite, Rain Carbon Secure R&D Grant for Greener Battery Materials

Northern Graphite Corporation and Rain Carbon Canada Inc, a subsidiary of Rain Carbon Inc, have jointly received up to C$860,000 (€530,000) in funding under the Canada–Germany Collaborative Industrial Research and Development Programme to develop sustainable battery anode materials.The two-year, C$2.2 million project aims to transform natural graphite processing by-products into high-performance, battery-grade anode material (BAM). Supported by the National Research Council of Canada Industrial Research Assistance Programme (NRC IRAP) and Germany’s Federal Ministry for Economic Affairs a..

Infrastructure Urban

05 Nov 2025

Antony Waste Q2 Revenue Jumps 16%; Subsidiary Wins Rs 3,200 Cr WtE Projects

Antony Waste Handling Cell Limited (AWHCL), a leading player in India’s municipal solid waste management sector, announced a 16 per cent year-on-year increase in total operating revenue to Rs 2.33 billion for Q2 FY26. The growth was driven by higher waste volumes, escalated contracts, and strong operational execution.EBITDA rose 18 per cent to Rs 570 million, with margins steady at 21.6 per cent, while profit after tax stood at Rs 173 million, up 13 per cent YoY. Revenue from Municipal Solid Waste Collection and Transportation (MSW C&T) reached Rs 1.605 billion, and MSW Processing re..