Bharat Petroleum Corporation Ltd (BPCL) Plans Rs 18,000 Cr Rights Issue to Drive Capital Raise
In a strategic move towards achieving its net zero carbon emission goals, Bharat Petroleum Corporation Ltd (BPCL), a state-owned enterprise, has revealed plans to raise up to Rs 18,000 crore through an equity shares rights issue. The funds generated from this initiative will be directed towards supporting the company’s environmentally sustainable projects.
As the majority stakeholder of BPCL, the government is expected to participate in the rights issue by infusing equity into the company. This move aligns with the government’s commitment, as announced in the Budget, to provide capital support of Rs 35,000 crore to state-run fuel retailers, including Indian Oil Corporation (IOC) and Hindustan Petroleum Corporation Ltd (HPCL), to facilitate their transition towards energy efficiency and achieving net zero targets.
Following BPCL’s board meeting on Wednesday, the company disclosed through a stock exchange filing that it has approved the proposal to raise capital up to Rs 18,000 crore. The capital will be obtained by issuing equity shares on a rights basis to eligible equity shareholders of the corporation as of the record date. Specific details regarding the rights issue, such as the issue price, right entitlement, record date, timing, and payment terms, will be communicated separately following the board’s approval in due course.
IOC, in addition to BPCL, has also revealed plans to launch a rights issue and has already approved the doubling of its authorised share capital to Rs 30,000 crore.
HPCL, majority-owned by the state-owned Oil and Natural Gas Corporation (ONGC), is anticipated to secure capital infusion through a preferential share allotment to the government.
At present, the government has not yet announced the allocation of the Rs 35,000 crore capital support among the three fuel retailers.
Bharat Petroleum Corporation Limited (BPCL) is an Indian public sector undertaking under the ownership of the Ministry of Petroleum and Natural Gas, Government of India. It manages three refineries located in Bina, Kochi, and Mumbai.
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