BPCL to raise Rs 18,000 crore via rights issue of shares

MUMBAI: Bharat Petroleum Corporation Ltd (BPCL) has received the board’s approval to raise up to Rs 18,000 crore through rights issue of shares to eligible shareholders.

The funds will be raised subject to receiving all the statutory approvals, the company said in an exchange filing.

“The detailed terms of rights issue, including but not limited to the issue price, rights entitlement, record date, timing, and terms of payment will be intimated separately after board approval,” the company said.


The state-owned refiner’s fundraising plan is for achieving energy transition, net zero and energy security objectives.

While further details on the rights issue will be shared by the company at a later date, news reports earlier said that the government is likely to invest Rs 9,000 crore in the company during the process.

In the Union Budget for 2023-24 (April-March), the government had announced Rs 30,000 crore fund infusion plan in the three oil marketing companies – BPCL, Indian Oil Corporation (IOC), and Hindustan Petroleum Corporation – to help them achieve energy transition and net-zero objectives.

A potential fund infusion by the government via the rights issue in BPCL is unlikely to increase their stake in the oil refiner. As of March end, the government held nearly 53% stake in the company.

For FY23, BPCL reported a sharp 82% drop in net profit to Rs 2131 crore, as oil refiners were unable to pass on the full impact of higher crude oil prices to consumers. The company reported an over 23% growth in revenue to Rs 5.3 lakh crore in FY23. On Wednesday, shares of BPCL ended 1.4% higher at Rs 365.40 on the National Stock Exchange.

Year-to-date, the stock has given nearly 11% returns, outperforming benchmark Nifty 50, that has given about 5% returns.