Castrol India’s stock rose sharply on Wednesday after its parent company BP announced a major stake sale.
What triggered the jump?
BP said it will sell 65% of Castrol to US investment firm Stonepeak for $6 billion. The deal values Castrol at about $10.1 billion.
How will the money be used?
BP plans to use the entire $6 billion to pay down its debt and strengthen its balance sheet.
What does the deal mean for Castrol India?
After the sale, a new joint venture will be formed with Stonepeak holding 65% and BP holding 35%. The partnership will focus on expanding Castrol’s business in the coming years.
Share price reaction
- Shares rose to an intraday high of ₹202.50, up about 9% from the previous close of ₹185.90.
- By the end of the session, the stock closed at ₹189.60, a 1.99% gain.
- Over the past five years, Castrol India shares have delivered a 52% total return, though they are down 4.5% over the last year.
- In 2025, the stock is down about 7% YTD and has slipped 2.4% in the past month, but it is up 3.85% over the last five trading days.
- The 52‑week high is ₹252 (March 6 2025) and the low is ₹162.80 (Jan 28 2025). Market cap is roughly ₹18,754 crore.
When will the sale close?
Regulatory approval is required, and the transaction is expected to be completed by the end of 2026.
Remember, this is just an overview, not a prediction. Do your own research or talk to a financial advisor before making any investment decisions.