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BPCL, SCI slip 6% after Cabinet okays stake sale

The government will sell its 53.29 per cent stake in BPCL after taking out Numaligarh refinery from its portfolio.

ETMarkets.com|
Updated: Nov 21, 2019, 03.55 PM IST
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PTI
BPCL PTI
Government will sell its 53.29 per cent stake in BPCL after taking out Numaligarh refinery from its portfolio.
Shares of Bharat Petroleum Corp Ltd (BPCL), Shipping Corporation of India (SCI) and Container Corp of India closed lower in trade on Thursday after the Cabinet approved the sale of government’s stake in these blue chip public sector companies.

BPCL closed down 5.66 per cent at Rs 513.80, while SCI closed 6.29 per cent lower at Rs 64.05. However, Container Corporation (Concor) of India fell 0.49 per cent to Rs 575.15.

The government will sell its 53.29 per cent stake in BPCL after taking out Numaligarh refinery from its portfolio.

In case of Concor, the government would sell 30.8 per cent of the 54.8-per cent equity it currently holds in the company. While the government will retain the remaining 24 per cent stake, it will cede management control to the buyer.

The government will also sell its stake in THDC India and North Eastern Electric Power Corporation Ltd (NEEPCO) to state-owned NTPC. Shares of NTPC were down 0.34% at Rs 116.70.

The government proposes to raise Rs 1.05 lakh crore from disinvestment in the current financial year. It had exceeded asset-sale targets of Rs 1 lakh crore in FY18 and Rs 80,000 crore in FY19. In the current fiscal year, by the end of September, the government had only raised Rs 12,359 crore through disinvestment.

At current market value, the government can raise about Rs 63,000 crore from selling its entire 53.3 per cent stake in BPCL, Rs 2,000 crore by offloading 63.7 per cent in SCI and Rs 13,400 crore from selling 30.8 per cent of Concor.
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