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BPCL plans to raise Rs 3,000 cr through NCDs in FY22

Disinvestment-bound Bharat Petroleum Corporation Ltd (BPCL) is planning to raise Rs 3,000 crore during the current financial year
BPCL plans to raise Rs 3,000 cr through NCDs in FY22
BPCL plans to raise Rs 3,000 cr through NCDs in FY22
  • BPCL is planning to raise up to Rs 3,000 crore during the current financial year 2021-22 through private placement of unsecured non-convertible debentures, said the PSU
  • For FY22, BPCL has planned a capex of Rs 10,000 crore

New Delhi: Disinvestment-bound Bharat Petroleum Corporation Ltd (BPCL) is planning to raise Rs 3,000 crore during the current financial year, the company said in a regulatory filing to the stock exchanges on Saturday. “BPCL is planning to raise up to Rs 3,000 crore during the current financial year 2021-22 through private placement of unsecured non-convertible debentures subject to market conditions,” said the filing. The debentures are proposed to be listed on debt market segment of the BSE and NSE.

“The details of the issue viz, class of investors, issue price, tenor, interest rate etc will depend on the market conditions which will be intimated on crystallisation of the issue,” BPCL told the bourses.

BPCL investment plan

Earlier in September, BPCL Chairman and Managing Director Arun Kumar Singh had said that the company plans to invest Rs 1 lakh crore in the next five years as it shifts focus towards petrochemicals, renewables, electric mobility and alternative fuels. For FY22, BPCL has planned a capex of Rs 10,000 crore. 

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The announcement about the funding plan comes a day after BPCL declared a net profit of Rs 3,200.90 crore in the H1 of FY22, up from Rs 2,263.05 crore a year ago. The company’s revenue from operations rose to Rs 1,01,937.67 crore during the second quarter of FY22 from Rs 66,331.22 crore last year. BPCL’ Board of Directors at its meeting held on October 29 declared an interim dividend of Rs 5 per equity share.

BPCL disinvestment

BPCL is a one of the major PSUs that the Centre is planning to disinvest in FY22. The government has exuded optimism about wrapping up the transaction process by March 2022. Vedanta, Apollo Global, and I Squared Capital are some of the bidders that are believed to be in the fray for the acquisition of the government’s 52.98 percent stake in BPCL. Financial bids are expected to be invited after the due diligence process is over.    

After opening at Rs 420.40 apiece on BSE, BPCL shares closed at Rs 417.75 apiece on October 29. On the NSE, BPCL scrips closed at Rs 419.30 apiece.

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