BPCL stock gains ground as govt's divestment process gathers steam

The divestment of BPCL, leading to value unlocking for investors, remains the larger trigger for the stock

The Centre’s move to divest stake in Bharat Petroleum Corporation (BPCL) is picking up pace, fuelling investor interest once again.

BPCL shares jumped 12 per cent on Friday, following the Department of Investment and Public Asset Management’s (Dipam’s) detailed response to initial queries by potential bidders.
 

The development is a strong indicator that the privatisation process still is on the government’s agenda.

While analysts feel the July 31 deadline for submission of expression of interest (EoI) may be extended, the Street has factored in completion of the process in FY21 itself, driven by the tight fiscal situation.

Divestment in BPCL — which will