Bharat Petroleum Corporation (BPCL) share price up marginally in the early trade on June 30 after company board approved fundraising.
Bharat Petroleum Corporation board at the meeting held on June 28 has approved the proposal for raising capital upto an amount not exceeding Rs 18,000 crore.
This capital will be raised by way of issue of equity shares on rights issue basis to eligible equity shareholders as on the record date (to be notified subsequently), company said.
The fundraising is subject to all statutory approvals.
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Morgan Stanley
Morgan Stanley has given an "overweight" rating for BPCL and set a target price of Rs 425 per share. However, they believes that the recently announced capital infusion through a rights issue of USD 2.2 billion could have been avoided.
The capital infusion indicates that the government's focus has shifted away from divestment and towards energy security.
Citi
Citi has issued a "buy" rating for BPCL and set a target price of Rs 485 per share. However, they are not entirely convinced of the rationale behind the equity raise announced by BPCL.
They believe that this equity raise could potentially limit the near-term upside potential for BPCL's stocks.
At 09:49 hrs Bharat Petroleum Corporation was quoting at Rs 365.35, up Rs 0.15, or 0.04 percent on the BSE.
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