bpcl: Market Movers: What’s behind the 6% drop in BPCL and the 5% rally in Adani Wilmar?

NEW DELHI: Shares fell 6 percent in trading on Monday after billionaire businessman Anil Agarwal said the government was reconsidering its divestment plans for the oil refinery.

“That (divestment) will not happen. They have said that they have withdrawn the offer, that they will come back with a new strategy,” the Vedanta Group chairman told a news outlet. “Overall, they have given a statement, they are not going to go ahead. Not in this format.”

The development comes just a month after the government claimed in Parliament that divestment offers had received multiple expressions of interest (EoI).

In a written response to a question in the Rajya Sabha about divestment of BPCL, Minister of State for Finance Bhagwat Karad said: “The appointed transaction adviser for the privatization of BPCL advised that multiple EoIs had been received.”

disappointment galore

Demand for Asian Granite’s Right Entitlement (RE) shares remained subdued and the value plunged 40 per cent on Monday to Rs 11.95 on BSE. Shares of the company also fell more than 5 percent to Rs 78.50.

Since April 11, the stock has fallen more than 20 percent.

The company’s rights issue was opened for subscription on Monday. The issue will close on May 10. The company is raising Rs 441 crore through rights issue to fund its expansion plans. The Company will issue up to 6,99,93,682 fully paid-up shares of capital stock.

Equity shares under the rights issue are being offered at a price of Rs 63 per share, ie a 24 per cent discount to the share’s closing price on Friday. The promoters have confirmed their holding of up to 28.99 per cent shareholding (ie up to 100 per cent of their current shareholding) amounting to Rs 128 crore.

The rally continues…

Indonesia’s palm oil export ban to control local palm oil prices is sure to hurt a range of businesses, from those that sell potato chips to those that make cosmetics. But there is a name that will benefit from this:


As industries try to fill the gap by buying other edible oils, Adani Wilmar, who is a major edible oil player, is likely to become an unintended beneficiary of Indonesia’s move.

Investors also felt this opportunity, with the shares rising 5 per cent to reach the upper circuit at Rs 764.95. The stock has already become a multiple exchange since it was listed on the exchanges in February.

(Disclaimer: The recommendations, suggestions, points of view and opinions given by the experts are their own. These do not represent the views of the Economic Times.)

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