BPCL has been in buying mode from start of September series, with share price having risen by about Rs. 25 in last 2 weeks, largely on Fund & FII buying. Reason being share has dividend element of Rs. 58, going ex from this Thursday 16-9-21. This big dividend is likely to see institutional buying continuing for whole of this month, as series expiry is on 30-9-21.
BPCL counter is presently seen under-owned by the institutional investors, as also, in an oversold position, as institutional investors having exited by 2 crore shares, in quarter ending 30-6-21, on fear of stake sale delay. But now having realised stake sale to gather momentum soon, they are desperate to buy 4 crore shares. Infact, Business Channels, Experts and their Coteries are even spreading fake news of stake sale delay, with not of much avail.
Presently,14.50 crore shares are held by 5.51 lakh retail shareholders, with an average of 263 shares held by each investor. They are unlikely to exit on cum dividend, as they are fond of and will probably be first time receiving such fat dividend on FV of Rs. 10 per share. Once share goes ex dividend at around Rs. 440, it will look extremely cheap on valuation parameters, ahead of 53% stake sale by the Govt, which will trigger an open offer as well.
Recent experience of fat dividend of Rs. 18.50 per share, on FV of Re 1, in case of Vedanta Ltd, saw huge buying on cum and ex dividend both, with similar buying pattern to be seen in case of BPCL as well, as investors have tested blood of fat dividend.
So, BPCL will remain in big buying mode, for entire month, on Cum & Ex Dividend both, but with a Caveat to see fake news being spread, of delay of strategic stake sale, by unethical guys, largely to help Big Fish, in buying Big chunk.
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