New Delhi: The deadline for the submission of bids for the sale of state-run Bharat Petroleum Corporation Ltd (BPCL) has been extended for a fifth time on Wednesday, a corrigendum published by the Department of Investment and Public Asset Management (DIPAM) showed. The deadline for submission of Expression of Interest (EoI) by bidders has now been extended to November 16. And this is the fifth extension to the deadline since the preliminary information memorandum (PIM) was issued on March 7.
"In view of further requests received from the Interested Bidders (IBs) and the prevailing situation arising out of COVID-19 pandemic, the last Date for submission of EoIs is further extended to 16th November, 2020 (by 5.00 PM)," the DIPAM said in the notification.
Government sources had told PSU Watch earlier that it looked unlikely that the disinvestment of BPCL will be completed within the current financial year. "Over the past few months, the share price of BPCL has also tanked considerably. This means that if the government proceeds with the sale in a rush, it may not be able to realise the true value of a Maharatna company like BPCL," one of the sources in the know of the matter said.
After touching a high of Rs 464.20 on July 21, BPCL shares had tanked to Rs 392 apiece on September 29. Media reports had also claimed that global oil majors like Saudi Aramco and Rosneft have decided to not throw their hats in the ring for BPCL in view of the crash in global crude oil prices and a trend indicating a shift away from conventional fuel.
The Cabinet Committee on Economic Affairs had approved the sale of BPCL in November last year. The number of shares that the government is looking to sell off stands at 1,14,91,83,592, DIPAM had recently said in a clarification to queries raised by bidders. The disinvestment of Numaligarh Refinery Ltd will be completed before the closing of BPCL privatisation process, DIPAM had said.
(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Telegram. Join PSU Watch Channel in your Telegram and stay updated)