Moneycontrol Be a Pro
Get App
you are here: HomeNewsBusiness
Last Updated : Dec 04, 2019 12:34 PM IST | Source:

For BPCL divestment, Deloitte quotes Re 1 as advisory fee: Report

SBI Caps was the second-lowest bidder, quoting Rs 15-17 crore

  • bselive
  • nselive
Todays L/H

The transaction adviser to Bharat Petroleum Corporation's (BPCL) privatisation process has quoted a fee of Re 1 only, Business Standard reports.

Deloitte Touche Tohmatsu India is helping the government sell its stake in BPCL.

SBI Caps was the second-lowest bidder, quoting Rs 15-17 crore, sources told the publication.


Moneycontrol could not independently verify the report.

“For Deloitte, this may be a prestigious deal and will add to its portfolio a national energy company,” a source told the paper.

Deloitte has quoted a similar price for the divestment of Container Corporation of India (CONCOR) as well, the report said.

The government had in November announced strategic divestment of five PSUs -- BPCL, CONCOR, Tehri Hydro Power Development (THDCIL), North Eastern Electric Power (NEEPCO) and Shipping Corporation of India (SCI).

The government plans to complete the BPCL transaction by March 31, 2020. This will help the government meets its divestment target of Rs 1.05 lakh crore for the current fiscal year.

This is not the first time such aggressive bidding has been done by an investment bank. JM Financial had charged Re 1 for Oil and Natural Gas Corporation’s (ONGC) purchase of the government's 51.11 percent stake Hindustan Petroleum Corporation (HPCL).

The trend of financial advisors quoting low prices began with the listing of Coal India on the stock exchanges roughly a decade ago. The advisors were paid only Rs 1,500, a source told the paper.

Are you happy with your current monthly income? Do you know you can double it without working extra hours or asking for a raise? Rahul Shah, one of the India's leading expert on wealth building, has created a strategy which makes it possible... in just a short few years. You can know his secrets in his FREE video series airing between 12th to 17th December. You can reserve your free seat here.
First Published on Dec 4, 2019 12:34 pm

tags #BPCL

Follow us on
Available On