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BPCL raises Rs 935 crore via issuance of NCDs

The NCDs have been allotted on a private placement basis to identified investors at an interest rate of 7.58 percent per annum

March 18, 2023 / 03:59 PM IST
BPCL had in February said it was planning to raise Rs 1,500 crore by allotting NCDs (Reuters file image)

BPCL had in February said it was planning to raise Rs 1,500 crore by allotting NCDs (Reuters file image)

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The state-owned Bharat Petroleum Corporation Ltd (BPCL) on March 18 announced that it has raised Rs 935.61 crore via the issuance of non-convertible debentures (NCDs) to eligible investors.

The company informed the stock exchanges that it has allotted "93,561 unsecured, listed, rated, non-cumulative and redeemable" NCDs at a face value of "Rs 1,00,000 each".

The taxable NCDs have been allotted on a "private placement basis to identified investors" at the interest rate of "7.58 percent per annum" payable annually, it noted.

The tenure of the instrument will be three years from the deemed date of allotment, the regulatory filing said, adding that the date of maturity has been fixed as March 17, 2026.

"In case of default in payment of interest and/or redemption amount on due dates, the company shall pay additional interest of two percent per annum over the interest rate payable on the NCDs," BPCL said.

The oil-marketing company had, last month, said it was planning to raise Rs 1,500 crore in the current fiscal year through the issue of NCDs.

BPCL had faced losses due to not increasing the retail fuel prices after April 2022, despite the international rates surging on account of the Russia-Ukraine war. The company, along with the two other public sector OMCs - Indian Oil Corporation and Hindustan Petroleum Corporation - suffered a combined loss of 18,622 crore in the April-December period, a CNBC TV-18 report said, citing government sources.

BPCL's shares settled at Rs 351 apiece at the end of the last trading session on March 17. The value was 0.5 percent higher as against the previous day's close. The company's stock has increased by 5.3 percent so far in 2023, after underperforming in the last calendar year.

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