1:1 Bonus Share: Crude Oil Refining Company Enters Into A Joint Venture Agreement With Oil India Limited
The stock is up by 88 per cent from its 52-week low of Rs 167 per share.
Bharat Petroleum Corporation Limited (BPCL) approved a joint venture agreement with Oil India Limited (OIL) to establish a City Gas Distribution (CGD) project in Arunachal Pradesh. This domestic partnership will see BPCL and OIL hold equal shares (50 per cent each) in the joint venture company, with the option for the Arunachal Pradesh government to acquire up to a 10 per cent stake.
The joint venture will focus on supplying, distributing, and marketing compressed natural gas (CNG), piped natural gas (PNG), and liquefied natural gas (LNG) along with related retail businesses within the state. This collaboration leverages Oil India's experience in the northeastern hydrocarbon sector, giving BPCL a strategic advantage in developing Arunachal Pradesh's CGD network.
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Bharat Petroleum Corporation Limited (BPCL) is a major Indian public sector undertaking engaged in refining crude oil and marketing petroleum products. With a substantial refining capacity of 35.3 MMTPA spread across three refineries in Mumbai, Kochi, and Bina, BPCL plays a crucial role in India's energy landscape. The company's diverse operations extend beyond refining to encompass retail, LPG, industrial and commercial fuels, aviation fuel, lubricants, and natural gas. BPCL's extensive network of retail outlets, LPG distributors, and industrial customers ensures widespread reach and market penetration. Additionally, the company actively participates in exploration and production activities, both domestically and internationally, contributing to India's energy security.
The company has a market cap of Rs 1.34 lakh crore and the President of India owns a 52.98 per cent stake in the company. The company has been maintaining a healthy dividend payout of 34.2 per cent and has delivered good profit growth of 28.2 per cent CAGR over the last 5 years. On June 21, 2024, the shares of the company ex-traded bonus shares in the ratio of 1:1. The stock is up by 88 per cent from its 52-week low of Rs 167 per share. Investors should keep an eye on this multibagger Large-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.