Sale by BPCL of its entire shareholding in Numaligarh Refinery Limited to OIL, EIL and Government of Assam

J. Sagar Associates (JSA) represented and acted for the Department of Investment and Public Asset Management (“DIPAM”) and Bharat Petroleum Corporation Limited (“BPCL”) in the sale by BPCL of its entire shareholding (equal to 61.65%) in Numaligarh Refinery Limited to Oil India Limited, Engineers India Limited and Government of Assam, along with the transfer of management control to OIL. The total deal value was Rs. 9,876 crore approximately. This sale is part of the larger proposed strategic disinvestment by the Government of India of its majority shareholding in BPCL. Numaligarh Refinery Limited is a public sector oil company in Assam, operating under the administrative control of the Ministry of Petroleum & Natural Gas, Government of India. It is engaged in the business of exploring, refining and marketing of petroleum products.

The carve out of NRL from BPCL before its disinvestment had been contemplated and announced in November 2019. The sale consideration was distributed out to the shareholders of BPCL. That this was accomplished in FY 21, not long after the resumption of business in the aftermath of COVID-19, is a testimony to the focus and hard work of all parties and advisors involved and marks a major milestone in the proposed strategic disinvestment by the Government of India of its shareholding in BPCL.

JSA team comprised Lead Partner – Rohitashwa Prasad, Partner – Pallavi Puri and Associate – Aishwarya Abhijit.