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Why BPCL share fell over 3% amid a rising market today

BusinessToday.In     September 25, 2020

Share price of Bharat Petroleum Corp. Ltd (BPCL) fell amid a rising market today after a report said stake sale in BPCL could be delayed to the next fiscal year. BPCL share declined 3.11% intra day to Rs 365 against previous close of Rs 377.25 on BSE.

The share stands lower than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages. It has lost 23.49% since the beginning of this year and fallen 19% during one year. Total 4.34 lakh shares changed hands amounting to turnover of Rs 16.19 crore on BSE. Market cap of thee firm fell to Rs 81,184 crore. Later the stock closed 0.44% lower at Rs 375.60 on BSE.

The share touched a 52-week high Rs 549.70 and a 52-week low Rs 252.00 on 21 November 2019 and 24 March 2020, respectively. The efforts to privatise refiner BPCL could spill over into the next fiscal year, according to a government document and sources, hurting government's efforts to rein in a ballooning fiscal deficit, said a report by Reuters.

According to the report, the government's 53.29% stake in BPCL could fetch $8 billion to $10 billion. The government announced its plan to sell its stake in BPCL in November 2019 which was a part of a broader program to spin off or sell stakes in dozens of state-owned companies.

The Reuters report said, "The sale has been targeted for completion in the current fiscal year at end-March, but the deadline for initial expressions of interest was pushed out by two months due to pandemic-related movement restrictions that have prevented potential buyers from inspecting the facility."

This could adversely affect the chances of government meeting the divestment target in the current fiscal as coronavirus pandemic stalled economic activity since March. 

BPCL to offer stock options to employees at third of market price

For the 2020-21 fiscal, the government has set an ambitious  disinvestment target of Rs 2.10 lakh crore. In last fiscal, the government missed the budgeted disinvestment target of Rs 1.05 lakh crore by a huge margin.

Till February 2 this year, the government mopped up about Rs 18,000 crore by way of disinvestment. The Revised Estimate pegged disinvestment proceeds at Rs 65,000 crore for fiscal ended March 2020.

BPCL employees to fight privatisation tooth and nail

Meanwhile, in a smart rebound, Sensex closed 835 points or 2.28% higher at 37,388 and Nifty rose 244 points higher to 11,050. Yesterday, the BSE 30-share benchmark Sensex ended 1,114 points lower at 36,553 and NSE Nifty 50 crashed 326 points to 10,805.

Share Market News Live: Sensex rises 800 points, Nifty at 11,040; IndusInd Bank, Cipla, Airtel top gainers

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