New Delhi (Anish Yande): Oil India shares surged on Friday to new 52-week high following plans for the acquisition of Numaligarh Refinery. The state-owned oil exploration company in consortium with Engineers India Ltd has bid for Bharat Petroleum Corporations stake in Numaligarh Refinery Ltd.
Shares of Oil India and Engineers India surge on Friday:
Oil India shares rose by up to 4.2 percent on Friday's session to Rs 126.9 per share. The share prices are at an incline for the fifth day. Oil India shares closed at Rs 121.85 per share on Thursday.
Shares of Engineers India rose to Rs 77.2 per share, an increase of 3.4 percent in Friday's session. The company's shares closed at Rs 74.65 per share on Thursday and rose to Rs 76.15 per share on Friday's session.
BPCL currently holds a 61.65% stake in Numaligarh Refinery Ltd, located in Assam. Oil India holds a 26% stake in the refinery currently and the Government of Assam holds a stake of 12.35 percent in the refinery.
Numaligarh Refinery Ltd revenue details:
Numaligarh Refinery Ltd currently refines petroleum products. The revenue of NRL in FY20 was recorded at Rs 14,073 crore.
The bid to be submitted for the acquisition would be dependent on the extent of the Right of First Offer. The ROFO would be decided by the Government of Assam.
Through the bid, Engineers India would be aiming to acquire a minority stake in the Numaligarh Refinery. The company is aimed at diversification into oil and gas operations.
Numaligarh Refinery is the leading customer of Oil India's crude oil production from the fields in Assam. The deal is expected to be finalized before the privatization process of BPCL and improving the synergy in Oil India's portfolio.
The privatization of BPCL is underway to secure the Rs 1.75 lakh crore disinvestment target for the financial year starting from April 1.
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