Here are 10 things to know about the sale of the government's stake in BPCL:
The latest round of bidding for BPCL's privatisation comes at a time when the coronavirus pandemic-related restrictions have hurt world economy and businesses, especially those operating in the oil and travel & tourism-related sectors.
Brent futures - the global benchmark for crude oil rates - are down 36.76 per cent so far this year, though having recovered nearly two times from a two-decade low of $15.98 per barrel in April on account of COVID-19.
In the country's largest privatisation drive ever, the government had invited bids from investors in March this year. But since then, that deadline has been extended four times by the Department of Investment and Public Asset Management (DIPAM). The government has said that there will be no further extension.
There are indications that oil majors BP Plc of the UK, Total of France, Aramco of Saudi Arabia and Rosneft of Russia are not very keen on bidding due to the asking price of close to $10 billion required to buy the firm, news agency Press Trust of India reported quoting industry sources.
Given the uncertain demand scenario, the investors are weighing the Bharat Petroleum Corporation acquisition, they said.
The acquirer will also be required to make an open offer for buying another 26 per cent stake from the public, which would cost Rs 23,276 crore.
Private companies with a net worth of $10 billion are eligible for bidding, and consortiums of up to four firms are allowed to bid. The lead member of the consortium must hold a 40 per cent stake, while others must have a minimum net worth of $1 billion each.
Bidding will take place in two stages. Qualified bidders in the first round will be asked to make a financial bid in the second round.
The company distributes 21 per cent of petroleum products consumed in the country by volume, as of March, and has more than a fifth of the 250 aviation fuel stations in the country.
BPCL will give buyers ready access to 15.3 per cent of the country's oil refining capacity, and 22 per cent of its fuel market share in the world's fastest-growing energy market. BPCL operates four refineries in Mumbai (Maharashtra), Kochi (Kerala), Bina (Madhya Pradesh), and Numaligarh (Assam) with a combined capacity of 38.3 million tonnes per annum, which is 15.3 per cent of India's total refining capacity of 249.8 million tonnes.