MUMBAI: British Petroleum (BP) is looking forward to sell 8.5 per cent stake in Indian subsidiary Castrol India through a block deal worth Rs.1,750 cr on Tuesday. The share sale is taking place at an indicative range of Rs.408 – Rs.422.50 per share, a discount of up to 3.5 per cent to Castrol India’s Monday closing price. Shares of Castrol India declined 4.5 per cent to Rs.422.45 on Monday.
Earlier in May, UK's BP sold 11.5 per cent stake in the company to reduce its holding in the lubricant maker from 70.92 per cent to 59.42 per cent for about Rs.2072 cr. Shares of Castrol have declined 5 per cent so far this year as against 9.5 per cent rise in Sensex. Currently Castrol share price is trading at Rs.450.10, up 6.52 per cent on the NSE. The scrip opened at Rs.433.45 from a previous closing of Rs.422.55. A good volume of 48,18,976 shares have already changed hands on the NSE counter so far.
Early this year, British Petroleum posted its record annual loss of 6.5 billion dollars and revealed that it was cutting thousands of jobs with an attempt to cope with the oil price dip. British Petroleum’s business has also been dealing with the fall-out from the disaster of Gulf of Mexico, 2010.
In May, Castrol India said that BP had undertaken a strategic portfolio review to optimize the deployment of capital across different businesses. It added that BP believed this option was a good opportunity to give out capital while maintaining its commitment to their lubricant business in India and continuing to have strategic control of Castrol.
Castrol reported a 12 per cent jump in net profit in the quarter ended June 2016 to Rs.207 cr over the same period in the previous year.
Visit Castrol share price history for further details.
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