Vedanta share rises over 7% after firm submits EOI for govt stake in BPCL

Vedanta share rose over 7% in trade today after the mining conglomerate put in a preliminary expression of interest (EoI) for buying the government's stake in Bharat Petroleum Corp Ltd (BPCL). Vedanta share has gained 6.85% in the last 2 days.

The stock touched an intraday high of Rs 116.85, rising 7.35%.

The share trades higher than 5 day, 20 day, 50 day and 200 day moving averages but lower than 100 day moving averages. The stock has lost 25% since the beginning of this year and fallen 19% during last one year.

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In a month, the share has gained 18.35%. Total 16.97 lakh shares changed hands amounting to turnover of Rs 19.43 crore on BSE. Market cap of the firm rose to Rs 42,506 crore.

A special purpose vehicle floated by the BSE-listed Vedanta Ltd and its London-based parent Vedanta Resources submitted an EoI before the close of deadline on November 16.

The government is selling its entire 52.98 per cent stake in BPCL and last date of submitting EoI was November 16.  The stake sale is part of plan to raise a record Rs 2.1 lakh crore from disinvestment proceeds in 2020-21 (April 2020 to March 2021).

"Vedanta's EoI for BPCL is to evaluate potential synergies with our existing oil and gas business," the company spokesperson said. "The EoI is at a preliminary stage and exploratory in nature."

They also stated that a major foreign player was among the three-four entities whose EoIs were received by the close of the bidding on November 16.

The other potential investors are foreign funds but their identity was not immediately disclosed. The government is selling its entire 52.98 per cent stake in India''s second largest fuel retailer as part of plans to raise a record Rs 2.1 lakh crore from disinvestment proceeds in 2020-21 (April 2020 to March 2021).

BPCL stake sale: Vedanta puts forward EOI to buy state-owned oil firm