Shares of Castrol India surged over 8% on Wednesday, December 24, after parent company British Petroleum (BP) announced a deal to sell a 65% stake in Castrol to global investment firm Stonepeak, valuing the lubricants business at an enterprise value of around $10.1 billion.
BP said it has reached an agreement to offload the majority stake, generating net proceeds of nearly $6 billion, which includes accelerated dividend payments. The company added that the proceeds will be fully utilised to reduce net debt, as it works towards its targeted debt range of $14–18 billion by the end of 2027. BP’s net debt stood at $26.1 billion as of the September quarter of 2025.
According to BP, the transaction follows a strategic review of Castrol and values the business at an EV/LTM EBITDA multiple of about 8.6x. The energy major said the deal will help strengthen its balance sheet, simplify its portfolio, and sharpen its focus on core downstream operations.
In India, Castrol’s shareholding structure has already seen changes in recent months. At the end of the September quarter, the parent had reduced its holding by selling a 51% stake in Castrol India. Life Insurance Corporation of India (LIC) holds around 10%, while the Government of Singapore owns 1.33%. Retail shareholders—those with authorised share capital of up to Rs 2 lakh—collectively hold about 16.6%, representing over five lakh investors.
BP said the transaction is expected to be completed by end-2026, subject to regulatory and customary approvals.