Mumbai: BP Plc sold a 8.53% stake in lubricant maker Castrol India bringing down its shareholding to 51%.
“BP has undertaken a strategic portfolio review to optimise the deployment of capital across different businesses,” the company said in an emailed statement.
Castrol India shares rose 8.79% to Rs459.60, while the benchmark BSE Sensex shed 0.39% to 28,523.20 points. The stock rose as much as 11.2% in intra-day trading.
“Castrol Ltd offers 42.2 million shares of Castrol India Ltd at Rs408 to Rs422.5 apiece,” according to terms for the deal obtained by Bloomberg.
Citigroup, ICICI Securities are the bankers to the deal, the report added. BP owned 59.5% of Castrol India as of the end of June through its units.
“BP believes this option is a good opportunity to release capital whilst maintaining its commitment to our lubricant business in India and continuing to be the majority shareholder of Castrol India Ltd,” the UK company said.
Castrol India manufactures and markets automotive, industrial and marine lubricants. It has three manufacturing plants located at Silvassa, Patalganga and Paharpur.