The board of BPCL on Monday, 22 March 2021, approved the scheme of amalgamation of Bharat Gas Resources (BGRL) with itself and its respective shareholders.
Bharat Gas Resources (BGRL) is a wholly owned subsidiary of BPCL for handling natural gas business. It was incorporated in June 2018.The merger will streamline the corporate structure and consolidate the assets and liabilities of BGRL within BPCL.
Also, it will help in availing easier financial support for the business of BGRL and more efficient utilisation of capital for enhanced development and growth of the consolidated business in one entity, BPCL said.
It will also improve management oversight and bring in operational efficiencies, cost savings and reduction of administrative responsibilities.
The amalgamation is in the interest of the shareholders, creditors and all other stakeholders of the companies and is not prejudicial to the interests of the concerned shareholders, creditors or the public at large, it said. No consideration in form of cash or shares is proposed to be issued as consideration for the amalgamation of BGRL with BPCL.
BPCL's net profit surged 120.3% to Rs 2,777.62 crore on 10.7% decline in net sales to Rs 66,731.39 crore in Q3 FY21 over Q3 FY20.
Shares of BPCL were down 0.43% to Rs 437.45 on BSE. BPCL operates in refinery and marketing activities, which includes downstream petroleum sector. The Government of India held 52.98% stake while Life Insurance Corporation of India (LIC) held 5.58% in BPCL as of 31 December 2020.
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