Shares of Bharat Petroleum Corporation Limited (BPCL) declined as much as 3.2 percent on Thursday to Rs 527.30. On Wednesday, the Union Cabinet provided in-principle approval for the sale of 53.2 percent of the government's stake in the oil marketing company to a strategic buyer, along with transfer of management control.
The disinvestment will, however, not include BPCL's equity shareholding in Numalighar Refinery based in Assam, which will remain with the government.
At the press conference, Finance Minister Nirmala Sitharaman also announced the government's approval to sell stake in five Corporate Public Social Enterprises (CPSEs).
Besides BPCL, the government has decided to sell 53.75 percent stake sale in Shipping Corporation of India, 30.8 percent in Container Corporation of India (CONCOR), 74.34 percent of THDC India and 100 percent in North Eastern Electric Power Corporation Limited (NEEPCO) to state-owned NTPC.
The decision is to reduce the government's stake in the said CPSEs below 51 percent, "while retaining management control on case-to-case basis, taking into account the government shareholding, and the shareholding of government-controlled institution," according to a release.
The government has a target of raising Rs 1.05 lakh crore from disinvestment in the current financial year. As of 30 September, had only raised Rs 12,359 crore. In the last fiscal year, the government had exceeded its asset-sale target of Rs 80,000 crore in FY19.