On December 24, 2025, Castrol India's share price experienced a significant surge of over 7% following the announcement that BP, a British energy major, has agreed to sell a 65% stake in its global Castrol lubricants business to the investment firm Stonepeak.
The transaction is valued at an enterprise value of $10 billion.
BP's decision to sell a majority stake in Castrol is part of its broader strategy to streamline its portfolio and strengthen its balance sheet. The transaction is expected to generate net proceeds of approximately $6 billion for BP, which will be utilised to reduce its net debt.
This move aligns with BP's ongoing efforts to simplify its operations and focus on its core integrated businesses.
The agreement with Stonepeak values Castrol at an implied enterprise value to last 12 months EBITDA multiple of around 8.6x.
This reflects the business's robust performance and growth potential. BP will retain a 35% stake in the new joint venture, allowing it to benefit from Castrol's growth while maintaining the option to realise further value in the future.
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The transaction has significant implications for Castrol India Limited, where BP holds a 49% interest. The sale is part of BP's $20 billion divestment programme, with proceeds aimed at reducing its net debt, which stood at $26.1 billion as of the end of 3Q 2025.
The transaction is expected to close by the end of 2026, subject to regulatory approvals.
Stonepeak, a prominent investment firm, sees the acquisition as a strategic opportunity to support Castrol's continued growth.
The firm recognises the critical role lubricants play in various industries and is eager to work alongside Castrol's experienced team and BP's guidance as a minority stakeholder.
As of December 24, 2025, at 1:12 PM, Castrol India share price on NSE was trading at ₹198.36 up by 6.69% from the previous closing price.
The sale of a 65% stake in Castrol to Stonepeak marks a significant step in BP's divestment strategy, aimed at reducing complexity and strengthening its financial position. The transaction has positively impacted Castrol India's share price, reflecting investor confidence in the future of the lubricants business under new ownership.
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Dec 24, 2025, 1:51 PM IST
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