Castrol India shares trim most of early gains; settle 2 pc higher

New Delhi, Dec 24 (PTI) Shares of Castrol India trimmed most of its early gains and ended 2 per cent higher on Wednesday.

During the mid-session trade, the scrip of the company rose 8.9 per cent to hit a high of Rs 202.50 apiece on the BSE after BP plc announced that it will sell a 65 per cent stake in the lubricants maker to Stonepeak for USD 10 billion.

It closed the session at Rs 189.60, up 1.99 per cent, on the exchange.

On the NSE, Castrol India's shares went up by 1.81 per cent to settle at Rs 189.30 apiece.

At the end of the session, the 30-share BSE Sensex fell 116.14 points, or 0.14 per cent, to 85,408.70 while the broader NSE Nifty slipped 35.05 points, or 0.13 per cent, to finish at 26,142.10.

Global energy giant BP Plc on Wednesday said it has reached an agreement to sell a 65 per cent shareholding in Castrol to Stonepeak at an enterprise value of USD 10.1 billion.

After the completion of the stake sale, a new joint venture will be incorporated, comprising a 65 per cent ownership of Stonepeak and a 35 per cent shareholding of BP.

Carol Howle, interim CEO at BP, said: "Today's announcement is a very good outcome for all stakeholders. We concluded a thorough strategic review of Castrol, which generated extensive interest and resulted in the sale of a majority interest to Stonepeak." She further stated that the transaction allows us to realise value for our shareholders, generating significant proceeds while continuing to benefit from Castrol's strong growth momentum.

US-based Stonepeak is a leading alternative investment firm specialising in infrastructure and real assets with approximately USD 80 billion of assets under management. PTI HG HVA