Bharat Petroleum Corp Ltd (BPCL) shares jumped to a fresh 52-week high in trade on Tuesday after a group of secretaries cleared divestment in the public sector downstream company. The government of India holds 53.29 percent equity in BPCL, the country's second-largest PSU refiner. At the current market price, this could translate into about Rs 55,000 crore for the government.

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BPCL shares moved nearly 9 percent higher to hit the day's high at Rs 511.55 per share on NSE. The stock opened at Rs 498, up 6 percent from Monday's close of Rs 470.10. BPCL shares ended nearly 5 percent higher in trade at Tuesday's close.

BPCL's stock price has rallied 40 percent in past 30 sessions, backed by heavy volumes as investors factored in the possibility of a stake sale in the company.

Apart from BPCL, the group of secretaries also cleared the entire 63.75 percent government stake sale in Shipping Corporation of India and 30 percent government equity sale in the Container Corporation of India.

Shares of Shipping Corporation of India also surged 13 percent intra-day while Container Corporation of India gained 7.5 percent.

Shares of Shipping Corp settled at Rs 44.90, higher by 3.82 percent at close, while CONCOR shares closed 6.32 percent higher at Rs 643.

Post the cabinet nod, the government will start the valuation exercise for each of the companies, appoint consultants and merchant bankers and also invite bids for the strategic stake sales of BPCL, Container Corporation, Shipping Corporation.

The final nod for each of the stake sales will come from the Finance Minister Sitharaman headed Alternate Mechanism or the group of Ministers on disinvestment which will approve the bid price and the actual transaction.

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First Published:Oct 1, 2019 11:06 AM IST