The move appears to be in keeping with the government’s proposal to create integrated public sector “oil major” eventually. Based on Monday’s market price, the government’s 54.88% stake in GAIL is worth about Rs37,188 crore. As on 31 March, the refining company’s consolidated borrowings stood at Rs31,473 crore and its net worth was Rs32,778 crore. As far as GAIL is concerned, if BPCL were to acquire the government’s stake in the company, then there won’t be any significant impact. The BPCL stock has performed comparatively better so far this fiscal year, going up 15% against the 6.4% rise in GAIL shares.

Source: Mint September 19, 2017 01:52 UTC