BPCL Board to Discuss Fundraising through Rights Issue for Energy Transition and Security Objectives
In a move towards achieving its energy transition, net-zero, and energy security objectives, Bharat Petroleum Corporation Ltd (BPCL), a state-run company, is set to hold a board meeting on Wednesday, June 28. The purpose of the meeting is to deliberate on raising funds through a rights issue.
As per the exchange filing made by BPCL on June 22, the board of directors will explore various avenues for capital infusion, including rights issues. The objective behind this move is to support the company’s energy transition goals and ensure net-zero carbon emissions, while bolstering energy security.
A rights issue is a mechanism employed by companies to raise capital. It involves offering existing shareholders the opportunity to purchase additional new shares in the company.
BPCL, a state-owned oil refiner, witnessed a notable surge in its net profit for the quarter ending in March 2023. The company reported a staggering growth of 168%, with a net profit of ₹6,780 crore compared to ₹2,559 crore in the corresponding period the previous year. This remarkable performance was primarily driven by a recovery in fuel marketing margins.
Moreover, BPCL’s revenue from operations during Q4FY23 witnessed an 8% YoY increase, amounting to ₹1.33 lakh crore compared to ₹1.23 lakh crore in the previous year.
Highlighting its commitment to shareholders, BPCL announced a dividend of ₹4 per share for the financial year 2023.
Over the past year, BPCL’s shares have experienced substantial growth, surging by more than 14%. On Tuesday, the company’s shares closed at ₹360.20 apiece on the Bombay Stock Exchange (BSE), marking a 0.52% increase.
About BPCL:
Bharat Petroleum Corporation Limited ( BPCL ) is an Indian public sector undertaking in India that is owned by the Ministry of Petroleum and Natural Gas, Government of India. The company runs three refineries located in Bina, Kochi, and Mumbai.
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