Castrol India offloading up to 8.53% stake worth Rs2,130 cr in market
24 Aug 2016
BP group company Castrol is selling 35 million shares, or about 7 per cent of its total equity stake in Castrol India, worth up to $261 million (about Rs1,750 crore) through secondary market block trades, in one of the biggest secondary share sale this year.
Castrol has the option to sell an additional 1.53 per cent equity over and above the proposed sale of a 7 per cent stake. Citigroup and ICICI Securities are book runners for the stake sale.
The upsize option takes the total deal size to 8.53 per cent equity in the company, worth about Rs2,130 crore.
Castrol is selling shares at Rs385-415.5 apiece, at a 7.3-per cent discount to yesterday's trading price of Rs416.8 per share on the National Stock Exchange (NSE), according to the terms of the transaction.
BP owned 59.5 per cent of Castrol India as of the end of June through its units. It had sold another stake in Castrol India in May (See: British energy giant BP sells 11.5% stake in Castrol India). Castrol is the world leading manufacturer, distributor and marketer of premium lubricating oils, greases and related services to automotive, industrial, marine, aviation, oil exploration and production customers across the world.
A group company of British energy giant BP, Castrol operates in over 40 countries, and employs approximately 7,000 staff worldwide. It is present in nearly 100 other markets and is represented by third party distributors who market and sell its products locally in other countries, adding up to a total of 140 countries.
The Castrol delivery network extends throughout 140 countries, covering 800 ports and partnering with over 2,000 distributors and agents.
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