Shares of Bharat Petroleum Corporation Ltd (BPCL) surged 2.4% to ₹448.00 apiece on BSE after the company announced to invest over ₹5,000 crores to build a polypropylene production facility at the Kochi refinery. In the past week, the share has risen 0.33%, while it gained 15% in a month. In the past 6 months, YTD period and 1 year, the stock has risen 19.70%, 33.67%, and 33.57% respectively.
State-owned BPCL said on Wednesday that it plans to invest approximately ₹5,044 crore in establishing a polypropylene production facility at the Kochi refinery in Kerala. The 400 Kilo-Tonnes per annum (KTPA) polypropylene is a proposed capacity addition which is expected to be completed in approximately 46 months from the date of investment approval, catering to the growing demand for petrochemicals in India.
Given the substantial expansion in the petrochemical sector in India driven by increasing market demand and the ready availability of Propylene feedstock, BPCL Kochi Refinery (KR) is presented with favourable prospects for Polypropylene production. This versatile material finds extensive use in downstream industries, including but not limited to packaging films, sheets, boxes, containers, bags, home ware, home care, and personal care.
Polypropylene finds extensive applications in downstream industries, including packaging films, sheets, boxes, containers, bags, home ware, home care, personal care, and everyday use items.
This initiative builds on BPCL's existing capabilities, leveraging the operation of a Propylene Derivative Petrochemical Plant (PDPP) at the Kochi refinery. The project's financing will follow a 65:35 debt-equity ratio, according to BPCL's disclosure in a separate stock exchange filing. The company's board of directors approved the polypropylene unit during a meeting held on December 19.
The company issued a statement in November stating, "In continuation of our letter dated 21st November 2023, this is to inform you that the Board of Directors at its meeting held on 29th November 2023 has declared an interim dividend of ₹21/- per equity share of face value ₹10/- each i.e. 210% for the financial year 2023-24. Further, the board of directors has fixed Tuesday,12th December 2023 as the record date to determine the eligibility of the shareholders to receive the said Interim Dividend. It may kindly be noted that the above dividend would be paid or the warrant in respect thereof would be posted on or before 28th December 2023.”
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