BPCL sets up virtual data room to allow bidders carry out diligence

A virtual data room has been readied to help bidders undertake due diligence before making financial bids for the government’s stake in Bharat Petroleum (BPCL), as per people familiar with the matter.

Data room is a place with confidential information and data about a target company that buyers must access to get a sense of the business’s worth ahead of an M&A transaction. Traditionally a well-guarded physical location, the data room has now begun shifting to clouds.

Given the pandemic and the travel restrictions, the government has opted for a virtual data room for BPCL, a person familiar with the matter said. The potential buyers and their consultants and lawyers can crawl through the information using a key provided by the data room managers. A virtual data room will help avoid physical travels, bringing down costs for bidders.


Vedanta and two global funds have expressed interest in buying the government’s entire 53% stake in BPCL. These players will have access to the data room as and when they ask for it.