BPCL signs pact with Oil India to develop city gas distribution project in Arunachal Pradesh

Shares of Bharat Petroleum Corporation of India (BPCL) may now get a big boost as the board has approved the joint venture agreement with Oil India Ltd to develop a city gas distribution project in Arunachal Pradesh. The joint venture agreement will be entered into in due course after the receipt of necessary approvals, the company said.

The shareholding pattern for the JV is 50% each for BPCL and Oil India. Up to 10% shareholding may also be offered to the Arunachal government or its nominee if it wishes to participate. In such an instance, the equity of BPCL and Oil India will reduce in equal proportion.

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The authorized share capital of the proposed JVC will be Rs 125 crore, comprising 12.5 crore shares of Rs 10 each. The initial issued, subscribed, and paid-up capital of the proposed JVC will be Rs 5 crore. On another note, BPCL reported a net profit of Rs 2,397 crore for the July-September quarter.

BPCL shares ended 4.82% lower at Rs 305.95 apiece on Friday, October 25. The stock has fallen 11.34% in the past month. Shares of Oil India are also trading lower by 0.43%.

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