BPCL tanks on "Trust"

BPCL is currently the top loser on the BSE. The stock opened itself over 4% lower at Rs.447.05 and went down to its present intraday low at Rs.440.50 and is now trading at Rs443 levels, down over 5%. Its 10% LC of the day stands at Rs.420.30.

The market is pretty perturbed that the PSU sold up to 7% of its stake in BPCL through a block deal today on the NSE and BSE.  This comes closely on the heels of the company stating yesterday night that the Board has approved sale of stake in BPCL 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.

The reason for the market being upset is because the floor price was apparently fixed at Rs.435/share, which is at a huge 8% discount to its closing price of yesterday at Rs.467.