BP is looking to sell 8.5% stake in Indian subsidiary Castrol India through a block deal worth Rs1,750 crore on Tuesday. The share sale is happening at an indicative range of Rs 408 – Rs 422.50 per share, a discount of up to 3.5% to Castrol’s Monday closing price. Shares of Castrol India declined 4.5% to Rs 422.45 on Monday.
In May UK’s BP sold 11.5% stake in the lubricant maker to reduce its holding in the company from 70.92% to 59.42% for about Rs 2072 crore.
Shares of Castrol have declined 5% so far this year as against 9.5% rise in Sensex.
Early this year, BP reported its record annual loss of $ 6.5 billion and revealed it is cutting thousands of jobs in an attempt to cope with the oil price slump. BP’s business has also been dealing with the fall-out from the 2010 Gulf of Mexico disaster.
For the quarter ended June 2016, Castrol reported a 12% jump in net profit to Rs 207 crore over the same period last year.
In May, Castrol said that BP has undertaken a strategic portfolio review to optimise the deployment of capital across different businesses. “BP believes this option is a good opportunity to release capital while maintaining its commitment to our lubricant business in India and continuing to have strategic control of Castrol India,” it said. Ken Crawley Womens JerseyShare This