Castrol India shares gained 1.81% to close at ₹189.30 following the launch of a mandatory open offer by Motion JVCo Limited, Stonepeak, and Canada Pension Plan Investment Board (CPPIB). The open offer comes after BP's announcement of selling a 65% shareholding in parent Castrol Limited to Stonepeak at an enterprise value of $10.10 billion.

Open Offer Launch and Terms

Motion JVCo Limited has officially launched an open offer to acquire up to 26% equity stake in Castrol India, according to a public announcement filed with stock exchanges. The offer complies with SEBI's takeover regulations following an indirect acquisition triggered by the global transaction.

BP's Strategic Divestment Details

The transaction generates approximately $6.00 billion in net proceeds for BP, including accelerated dividend payments, which will be used to reduce net debt towards its target range of $14-18 billion. BP's net debt stood at $26.10 billion at the end of the September quarter. The deal follows BP's strategic review of Castrol and is expected to complete by end of 2026, subject to regulatory approvals.

Current Shareholding Pattern

At the end of the September quarter, BP had already sold a 51% stake in Castrol India. The current shareholding structure shows diversified ownership with institutional and retail participation.

Market Performance and Outlook

Castrol India shares had earlier surged over 8% during the trading session after reports of BP's agreement to sell the majority stake. The company maintains its position in the chemicals sector with a mid-cap market capitalization of ₹18,966.40 crores. Upon completion, a new joint venture will be formed with 65% Stonepeak ownership and 35% BP retention, with BP maintaining a two-year lock-up period on its remaining stake.

Castrol India Limited , a leading lubricant manufacturer, has reported a robust performance for the third quarter, with revenue growth of 6% year-on-year, reaching INR 1,363.00 crores. The company's growth was primarily driven by a 7% increase in volume sales, highlighting its strong market position and effective growth strategies.

Financial Highlights

The company's financial performance for Q3 and the nine months ending September showcases steady growth across key metrics:

Segment Performance

Castrol India reported strong performance across various segments:

• Personal Mobility: 6% growth
• Commercial Vehicles: 8% growth
• Industrial Segment: Double-digit growth

Strategic Initiatives and Expansion

The company has undertaken several strategic initiatives to strengthen its market position:

1. Retail Network Expansion: Castrol has expanded its retail network to over 150,000 outlets, including 40,000 rural outlets, enhancing its market reach.

2. Service Center Growth: The number of Castrol Auto Service centers has increased to 750 across 300 cities, up from 580 a year ago.

3. Rural Market Focus: The company has established about 500 rural express oil change kiosks, contributing to its double-digit growth in rural areas.

4. Product Innovation: Castrol launched new products, including a helmet cleaner, addressing emerging consumer needs.

5. Electric Vehicle Partnership: An MoU was signed with VinFast Auto for EV after-sales services, positioning Castrol in the growing electric mobility ecosystem.

Future Outlook

Kedar Lele, Managing Director of Castrol India, expressed optimism about the company's future, stating, "We are executing our onward, upward forward strategy with discipline and passion, focusing on core automotive growth, pushing into high-opportunity industrial and rural markets, and investing in future-ready adjacencies like EV fluid and Auto Care."

The company remains focused on accelerating volume growth, delivering market share gains, maintaining profitability, and staying ahead by building solutions that serve the evolving needs of customers.

Leadership Transition

Castrol India announced that Saugata Basuray will succeed Kedar Lele as Managing Director from January 1st, 2026. Basuray, with 26 years of experience in the company, is expected to continue the current growth strategy.

As Castrol India continues to navigate the evolving lubricant market and expand into new segments, the company appears well-positioned to capitalize on growth opportunities in both traditional and emerging markets.