Odisha News Hour

BPCL Trust Announces Block Deal Sale of 68.4 Lakh Shares; Important Information For Investors

<p>Following a block transaction on the BSE on Wednesday whereby about 68.4 lakh shares were exchanged, the shares of Bharat Petroleum Corporation (BPCL) were trading higher.</p>
<p><img decoding=”async” class=”alignnone wp-image-407368″ src=”https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-bpcl-trust-announces-block-deal-sale-of-68-4-lakh-shares-important-information-for.jpg” alt=”theindiaprint.com bpcl trust announces block deal sale of 68 4 lakh shares important information for” width=”1004″ height=”669″ title=”BPCL Trust Announces Block Deal Sale of 68.4 Lakh Shares; Important Information For Investors 9″ srcset=”https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-bpcl-trust-announces-block-deal-sale-of-68-4-lakh-shares-important-information-for.jpg 510w, https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-bpcl-trust-announces-block-deal-sale-of-68-4-lakh-shares-important-information-for-150×100.jpg 150w” sizes=”(max-width: 1004px) 100vw, 1004px” /></p>
<p>The company notified the exchanges on February 13 that “the Board of Directors of BPCL has approved the sale of up to 68,36,948 equity shares held by BPCL ESPS Trust, in accordance with the BPCL Employee Stock Purchase Scheme 2020 and Sebi (Share Based Employee Benefits and Sweat Equity) Regulations, 2021.”</p>
<p>The stock was up 5.09 percent on the NSE at 12:20 p.m., trading at Rs 614.15. Due to lower crude oil prices, which improved marketing margins, it has increased by around 36% thus far in this calendar year.</p>
<p>Strong refining and marketing margins contributed to BPCL’s 73% increase in net profit for the third quarter, which was announced last month. In the three months that concluded on December 31, the company’s standalone net profit increased from Rs 1,960 crore to Rs 3,393 crore from the previous year.</p>
<p>For the December quarter, its average gross refining profit was $13.3 per barrel. Operational revenue remained relatively stable at Rs 1.3 lakh billion, while expenditures decreased by 4.5%.</p>
<p>Given that internal combustion engine vehicle demand is still high and India is the world’s fastest-growing market for fuel consumption, Morgan Stanley thinks state-owned OMCs like HPCL, BPCL, and Indian Oil have more opportunity to rise.</p>
<p>It further said that as the oil market becomes less unpredictable, refiners’ pre-Covid-19 hardware improvements are now showing up in profitability. According to the brokerage’s analysis, “stocks of oil refining and marketing companies are seeing multiples re-rate as investors reassess long-term growth prospects.”</p>
<p>Morgan Stanley anticipates a re-rating of these equities with multiples returning to levels seen between 2014 and 2017. They also anticipate earning enhancements.</p>
<p>Companies looking to raise cash or simplify their ownership structure often use block transactions, which include the sale or acquisition of a large number of shares in a single transaction.</p>