Castrol India shares surge 8% after BP agrees to sell majority stake in parent

Shares of Castrol India have surged over 8% after BP agreed to sell a 65% shareholding in Castrol to Stonepeak at an enterprise value of $10 billion. 

BP said it has reached an agreement to offload a 65% shareholding in Castrol, generating total net proceeds of around $6 billion, including accelerated dividend payments. The proceeds will be fully used to reduce net debt. The transaction follows a strategic review of Castrol and values the business at an enterprise value of $10.1 billion, implying an EV/LTM

EBITDA multiple of around 8.6x. bp said the deal strengthens its balance sheet, simplifies its portfolio, and supports its strategy to focus on downstream operations.

At the end of the September quarter, Parent Castrol sold 51% stake in the Indian entity. LIC has a 10% stake in Castrol India, followed by the Government of Singapore with a 1.33% stake. Over 5 lakh small retail shareholders, or those with authorised share capital of up to ₹2 lakh, had a 16.6% stake in Castrol India.