The share price of state-run oil refiner Bharat Petroleum Corporation Ltd (BPCL) declined over 5 percent in early trade on Tuesday after the company announced its plan to sell its treasury shares through a block deal.

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The company’s board approved the sale of its equity shares held by the BPCL Trust for Investment through a block deal, the company said. BPCL is likely to raise nearly Rs 7,000 crore through the sale.

“A sub-committee of the Board of Directors of BPCL has approved the sale of BPCL equity shares which are held by the BPCL Trust for Investment in shares through accelerated book built offering of equity shares on the screen-based trading platform of the stock exchanges,” BPCL said in a regulatory filing.

“The total number of equity shares being offered is up to 15,89,93,397 equity shares held by the above trust,” it added.

After the 2013 merger of BPCL with state-run Kochi Refinery, around 9 percent of the equity shares of BPCL were created as treasury shares. Two percent of those treasury shares were earmarked for the employees' benefit trust.

At 10:15 am, the shares of BPCL were trading 4.60 percent lower at Rs 445.50 apiece on the BSE as compared to a 0.68 gain on the benchmark Sensex.

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