Fitch Ratings on Monday said uncertainty over the bidder consortiums and process complexity, including valuation, may lead to potential delays in privatisation of India’s second-largest fuel retailer, Bharat Petroleum Corporation Ltd (BPCL). Affirming BPCL’s rating at ‘BBB-‘ with a negative outlook, Fitch said it continues to treat the potential divestment of the company by the Indian government as an event risk.
“Bidders are conducting due diligence, but uncertainty over the bidder consortiums and process complexity, including valuation, may lead to potential delays. We believe the risks of further COVID-19 waves and global oil and gas companies’ increased focus on energy transition lead to additional uncertainty over the timing and valuation of potentially large acquisitions in the sector,” it said.
The rating agency said it will review the ratings once significant progress is achieved. The government is selling its entire 52.98 per cent stake in BPCL for…
