After Air India, all eyes will now be on BPCL

By Research Desk
about 12 days ago

With Government of India (GoI) successfully privatising Air India to Tata Group, it has not only saved losses worth Rs. 20 cr per day of tax-payer money, but also sent a loud and clear signal to India Inc, foreign investors and global corporates at large, of its intent in executing on the disinvestment targets. While Rs. 2,700 cr cash quantum from Air India sale will not augment FY22’s disinvestment target of Rs. 1.75 lakh cr materially, it will set the ball rolling for BPCL disinvestment, which will be the next in line.

Secretary for DIPAM, which is running the privatisation process for both Air India and BPCL, had given March 2022 deadline for conclusion of both the transactions. Post Air India sale, Niti Ayog chief Amitabh Kant has expressed a better-than-expected valuation and much faster pace for BPCL, which is due to see financial bids being invited now, with 3 biders seen ahving shortlisted, coupled with regulatory changes like permitting 100% foreign investment seen in place. Thus, the ground is all set and the count-down has begun.

As they say, Actions Speak Louder than Words; and this one from GoI, will clearly be noticed by all - in India and outside.

We are expecting Vedanta to acquire BPCL, while positive view will be seen building on both stocks, viz. BPCL & Vedanta.

This is not a Buy or Sell recommendation, while stock recommendations are provided exclusively to our paid members in the Member Zone.

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