BPCL share slips 5% on plans to sell treasury shares

Stocks

The share touched a 52-week high of Rs 482.40 and a 52-week low of Rs 252 on 02 March 2021 and 24 March 2020, respectively.

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Bharat Petroleum Corporation (BPCL) share price slipped 5 percent in early trade on March 9 on reports that the company is planning to sell up to 4 percent of its treasury shares worth Rs 3,700 crore.

The country’s second-biggest state refiner BPCL, which is one of the key divestment candidates of the government, launched a block deal on March 8 to sell up to 4 percent of its treasury shares worth Rs 3,700 crore, sources with the knowledge of the matter told CNBC Awaaz.

According to the term sheet of the deal, reviewed by CNBC Awaaz, BPCL has set a floor price of Rs 435 per share for the proposed transaction which is at a 7 percent discount to the closing price on March 8, 2021.

To be sure, around 9 percent of the equity shares of BPCL were created as treasury shares post the 2013 merger of the refiner with state-run Kochi Refinery. Two percent of those treasury shares were earmarked for the employees benefit trust, leaving behind a kitty of 7 percent shares.

“A sub-committee of the Board of Directors of BPCL has approved the sale of BPCL equity shares which are held by the BPCL Trust for Investment in shares through accelerated book built offering of equity shares on the screen-based trading platform of the stock exchanges,” the company said in the release on exchanges.

“The total number of equity shares being offered is upto 15,89,93,397 equity shares held by the above trust,” it added.

bpcl

At 09:17 hrs, Bharat Petroleum Corporation was quoting at Rs 446.90, down Rs 20.10, or 4.30 percent on the BSE.

The share touched a 52-week high of Rs 482.40 and a 52-week low of Rs 252 on 02 March 2021 and 24 March 2020, respectively.

Currently, it is trading 7.36 percent below its 52-week high and 77.34 percent above its 52-week low.