BPCL board approves ₹5,000 crore fundraising through non-convertible debentures

State-owned refiner Bharat Petroleum Corporation Limited (BPCL) on Tuesday (August 18) said it will raise up to ₹5,000 crore through Non-Convertible Debentures (NCDs) after the company's Board of Directors approved the fundraising proposal.

The board has approved the issuance of secured or unsecured redeemable NCDs, in one or more series or tranches, with the total amount not exceeding ₹5,000 crore.

The company can undertake the fundraising through a maximum of 10 tranches within one year. The details of the allotment and other terms will be decided at the time of issuance of each series or tranche.

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In June this year, Bharat Petroleum Corporation Ltd had signed an agreement to acquire a 40% stake in Tiki Tar and Shell India Pvt Ltd for ₹85 crore, marking another step in strengthening its presence in the bitumen and road infrastructure materials segment.

The company informed exchanges on Monday that it has entered into a share purchase agreement to acquire the stake from Shell Overseas Investments B.V. Upon completion of the transaction, BPCL will become an equal joint venture partner in Tiki Tar and Shell India alongside the existing shareholder.

The acquisition is subject to customary regulatory approvals and the fulfilment of conditions precedent laid out in the agreement.

Tiki Tar and Shell India manufacture and market a range of bitumen-based products used in road construction and maintenance, including modified bitumen, emulsions and other value-added products.

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The transaction is expected to complement BPCL's existing refining and fuel marketing operations while strengthening its downstream presence in infrastructure-linked businesses.

First Quarter Results

BPCL posted a net profit of ₹3,192 crore, lower than market expectations, largely due to a ₹4,349 crore exceptional impairment charge related to investments in subsidiary Bharat PetroResources Ltd (BPRL).

Operationally, however, the company outperformed Street estimates. EBITDA stood at ₹10,061 crore, well ahead of expectations, while the EBITDA margin came in at 8.5%, supported by healthy refining and marketing performance.

BPCL also reported cumulative impairment losses on investments in BPRL of ₹11,313.83 crore as of March 31, 2026, and foreign exchange losses of ₹1,644.22 crore during FY26, compared with ₹357.96 crore in the previous financial year.

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Shares of Bharat Petroleum Corporation Ltd ended at ₹310.80, down by ₹6.20, or 1.96%, on the BSE.