Assam govt to increase share in NRL from 15.47% to 26% in due course: OIL

• The Assam government will purchase the shares time at the same valuation at which OIL has purchased shares from BPCL

• Shares were sold by BPCL at a price of Rs 217.75 per share which was offered by OIL and EIL

New Delhi: State-run Oil India Ltd (OIL) has said that the Assam government intends to increase its shares in Numaligarh Refinery Ltd (NRL) from 15.47 percent to 26 percent in due course of time by acquiring the remaining shares from OIL. "Government of Assam intends to increase its shareholding in NRL to 26 percent. To achieve this, GoA is likely to purchase remaining shares from OIL in due course of time at the same valuation at which OIL has purchased shares from BPCL," said the company in an official statement released on Wednesday.

NRL shares were sold by BPCL at Rs 217.75 per share

The news comes weeks after a share purchase agreement (SPA) was signed between disinvestment-bound Bharat Petroleum Corporation Ltd (BPCL) and a consortium of OIL, Engineers India Ltd (EIL) and the Assam government on March 25. Shares were sold by BPCL at a price of Rs 217.75 per share which was offered by OIL and EIL. At this price, NRL is valued at Rs 16,018 crore. 

ALSO READ

1. NRL awards Rs 300-cr order for pipes for a section of Paradip-Numaligarh Crude Oil pipeline project

2. NRL starts door-to-door delivery of diesel in North East India

This is the price at which the Assam government will acquire additional shares from OIL.

The backdrop

BPCL sold 43.05 crore shares in NRL to the consortium of OIL and EIL at a consideration of Rs 9,375.96 crore. While EIL paid Rs 700 crore for 3.21 crore shares, OIL bought 39.84 crore shares for Rs 8,675.96 crore. The remaining 2.29 crore equity shares held by BPCL were purchased by the government of Assam for Rs 500.00 crore. With these transactions, BPCL transferred its entire 61.65 percent holding in NRL to the consortium and the Assam government.

Post the stake sale, OIL became a majority shareholder in NRL with 80.16 percent shares, followed by the Assam government which bought 15.47 percent stake and EIL which acquired 4.37 percent stake.

(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. You may follow us on Twitter here and stay updated)