BackBPCL rights issue: Maharatna company to raise up to ₹18000 crore. Details here
BPCL rights issue: The Maharatna company has approved a rights issue to raise up to ₹18,000 crore
PremiumBPCL rights issue: The board of directors of Bharat Petroleum Corporation Ltd (BPCL) has considered and approved fund rising through issuance of rights issue. The Maharatna company aims to raise up to ₹18,000 crore through the rights issue. The public sector undertaking (PSU) company informed Indian stock market exchanges in this regard and said that BPCL rights issue price, record date and other details will be shares in near term.
BPCL rights issue details
Informing Indian stock market bourses about the rights issue, BPCL said, "In continuation to our letter dated 22.6.2023 and in terms of Regulation 30 of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, this is to inform you that the Board at the meeting held on 28.6.2023 has approved the proposal for raising capital up to an amount not exceeding ₹18,000 crore (Rupees Eighteen Thousand crores only). This capital will be raised by way of issue of equity shares on rights issue basis to eligible equity shareholders of the Corporation as on the record date (to be notified subsequently), subject to all statutory approvals and in accordance with all applicable laws including the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended from time to time."
"The detailed terms of rights issue including but not limited to the issue price, right entitlement, record date, timing, and terms of payment will be intimated separately after approval of the Board in due course," the Maharatna company said.
HPCL, IOC to follow shoot
BPCL rights issue decision taken by the central government to infuse more equity in the state-owned oil manufacturing company. In budget 2023, the finance minister Nirmala Sitharaman had announced to provide ₹35,000 crore capital support to oil making PSU companies — HPCL (Hindustan Petroleum Corporation Ltd), BPCL and Indian Oil Corporation Ltd (IOCL). So, stock market is expecting issuance of rights from IOCL and HPCL as well.
In fact, IOCL has recently announced to double its authorised share capital citing, “It is hereby informed that the Board of Indian Oil at its meeting held on 24th June 2023 has approved the proposal for seeking approval of the members at the ensuing Annual General Meeting for increase in the Authorized Share Capital of the Company from ₹15,000 crore (Rupees Fifteen Thousand crore) divided into 1,500 crore (One Thousand Five Hundred crore) equity shares of ₹10 (Rupees Ten) each to ₹30,000 crore (Rupees Thirty Thousand crore) divided into 3,000 crore (Three Thousand crore) Equity Shares of ₹10 (Rupees Ten) each."
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