The board of Bharat Petroleum Corporation Ltd (BPCL) met on Wednesday to approve the proposal for raising up to Rs 18,000 crore. The 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, which will be notified subsequently, the company said in a filing to BSE.
Shares of BPCL settled 2.11 percent higher at Rs 365.85 apiece on the NSE ahead of the company's board meeting. The stock dipped 2 percent in the last five trading sessions while it jumped 10 percent on a year-to-date basis. In the last one year, BPCL shares gained 15.63 percent.
The state-run fuel retailer last week informed bourses that its board of directors would meet on June 28 to consider a proposal for raising of funds through various means including rights issue.
The capital infusion is for achieving energy transition, net zero, and energy security objectives.
A rights issue is an invitation to existing shareholders to buy additional new shares in the firm at a discount at the stated date or on a future date.
BPCL in March 2023 had announced raising Rs 935 crore through the issue of NCDs to eligible investors.
The fuel retailer reported a 159 percent growth in net profit to Rs 6,477.7 crore for the March quarter of FY23 compared to the year-ago period on the back of a recovery in fuel marketing margins.
Its revenue from operations stood at Rs 1.18 lakh crore in the March quarter against Rs 1.23 lakh crore in the corresponding period of the preceding fiscal.
CNBC-TV18 earlier this month reported that oil marketing companies may cut prices as their financial health has improved after a washout in the first half of FY23. Fuel retailers, including BPCL, received multiple brokerage upgrades on the back of healthier refining prospects and lower crude prices.
