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Last Updated : Dec 04, 2019 12:34 PM IST | Source: Moneycontrol.com

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

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

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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.

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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.

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First Published on Dec 4, 2019 12:34 pm

tags #BPCL

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