The share price of Bharat Petroleum Corporation Limited (BPCL) tumbled by more than 6 per cent on Monday on reports that the government has put a pause on disinvestment of the company.
Trading in BPCL shares started at Rs 380.05 at the BSE on Monday. The scrip tumbled to a low of Rs 368.75 in the intra-day.
At 1.24 pm, BPCL share was trading 5.93 per cent down at Rs 370.15 on the BSE.
The government-run BPCL share has tumbled after Vedanta Group Chairman Anil Agarwal told a private media organization in an interview on the weekend that the government has withdrawn the disinvestment offer and is likely to redraw the plan.
The BPCL disinvestment plan was announced in the Union Budget 2019. The Union Cabinet chaired by Prime Minister Narendra Modi approved the disinvestment proposal in November 2019.
Subsequently, bids were invited in 2020 and the government had planned to complete the disinvestment process by March 2021.
Three firms – Anil Agarwal-led Vedanta Resources and two private equity firms Apollo Global and I Squared Capital’s arm Think Gas – submitted their bids for BPCL in November 2020. However, Think Gas has dropped out. So, only two companies are left in the bidding process.