Exclusive: Government may scrap existing divestment process for BPCL; announcement likley soon by DIPAM
Indian government can start the divestment process of Bharat Petroleum Corporation Limited (BPCL) in a new way and scrap the current process of divestment .
Indian government can start the divestment process of Bharat Petroleum Corporation Limited (BPCL) in a new way and scrap the current process of divestment. In addition, the Department of Investment and Public Asset Management (DIPAM) may announce a new divestment process soon. Tarun Sharma's report.
Talking about the reason for scrapping the current divestment process Sharma said that BPCL was not getting financial bids and two companies Apollo Global Pay & I Squared Capital which were potential bidders were not getting strategic partners.
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As a result, DIPAM can cancel the divestment process and announce a new one soon.
He further said that BPCL divestment will not happen soon. The government will have to prepare a new roadmap for this investment because the entry of the financial bids is not being done in the recent one. They seek a de-merger, in which the marketing firm and the oil field company are separated, which the government is not doing now.
They may be sold separately in the coming time, but the government can scrap the present process.
Expert on BPCL Divestment
If we look at the chart, we can see that consolidation is taking place, Expert Kunal Saraogi said. After a strong rebound from the lows, the stock is now trading at a resistance level. So I think you'll see the speed in it after 390, he further added, there are presently no buy thoughts. It's better to hold off and see what happens. Consider purchasing if there is a breakout over 390, Saraogi suggested.
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