BPCL entered into a JV agreement with Oil India to develop a project in Arunachal Pradesh

The Ministry of Petroleum and Natural Gas is in charge of the operations of the 2nd-largest government-owned downstream oil producer in India, Bharat Petroleum Corporation Limited, a public sector oil and gas company with its headquarters located in Mumbai. It runs three refineries in Bina, Kochi, and Mumbai.

Board of BPCL approves joint venture with Oil India

The joint venture agreement with Oil India Ltd. to develop a city gas distribution project in Arunachal Pradesh has been approved by the board of Bharat Petroleum Corporation of India (BPCL), the company announced on October 26. On October 25, the board of directors of BPCL convened to discuss the matter. The company stated that the necessary approvals will be obtained before the joint venture agreement is signed.

Partnership of 50% sharing between Oil India and BPCL

In the joint venture, 50% of the shares are owned by each of BPCL and Oil India. If the Arunachal government or its designee wishes to participate, they may also be offered up to 10% of the shares. In this scenario, the equity of Oil India and BPCL will decrease proportionately.

An authorized share capital of Rs. 125 crore will be allocated to 12.5 crore shares of the proposed JVC, each valued at Rs. 10. The initial issued, subscribed, and paid-up capital for the proposed JVC will total Rs. 5 crore.

BPCL Finance

In addition, BPCL announced a net profit for the July–September quarter of Rs. 2,397 crore. BPCL’s net profit fell 20.5% on a sequential basis. The top line for BPCL was Rs. 1.03 lakh crore. Comparing this quarter to the previous June quarter, the topline fell 9.1%. Its EBITDA decreased 19.5% from the June quarter to Rs. 4,547 crore.

Bharat Petroleum Corporation Ltd.’s stock has risen more than 1% today

The stock of Bharat Petroleum Corporation Ltd. peaked at Rs. 315.50 and is now trading at Rs. 310.05 per share, up more than 1% today. The stock has dropped 11.34% in the past month.

Oil India Ltd.’s stock is slightly lower

The stock of Oil India Ltd. is currently trading at Rs. 483.30 per share, and it is low trading at Rs. 468.20, where we can observe a strong move in the stock at the end of the day.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.