Bongaigoan Refinery was the subject of renewed buying interest as the likes of Reliance Industries, Gail India, Assam Petrochemicals and Gaytex have expressed interest in forming a partnership with the company in a PSF venture.

The scrip of the Indian Oil Corporation subsidiary sprang forth 5.8% to Rs 16.30 on BSE as a consequence. Bongaigaon Refinery and Petrochemicals then traded close to the day's high of Rs 16.35. Around 40,700 BRPL shares were traded on BSE early post-noon.

After hitting a low recently following a sustained fall, the scrip has witnessed bargain hunting. From Rs 14 on 1 April 2003, the scrip has surged 16.4% in three trading sessions to the current Rs 16.30. Prior to that, the scrip witnessed a sustained fall – 34.4% from Rs 21.35 on 16 December 2002 to Rs 14 on 1 April 2003. Market men, however, say that some funds which had taken positions on the counter maintained their holdings despite the fall.

Latest reports suggest that a number of companies like Reliance Industries, Gail India, Assam Petrochemicals and the Baroda-based Gaytex have submitted expressions of interest for a strategic partnership with BRPL for its polyster staple firbre  units. BRPL operates a refinery-cum-petrochemical complex at Bongaigaon in Assam.

BRPL has been operating its polyester and aromatics plants intermittently depending on market conditions. The main problem faced by the company's PSF units is the low prices and high input costs for the product. A few months back, BRPL put on hold its proposal to expand PSF capacities by 25% from 30,000 tonnes per annum to 37500 tpa.

BRPL became a subsidiary of IOC in March 2001 with the sale of the government's 74.46% equity stake to IOC. BRPL and IOC are jointly identifying low-cost petrochemical projects that they may undertake with a prospective alliance partner in the coming years.

BRPL's refinery has a crude processing capacity of 2.35 million tonnes per annum. The government has granted 50% relief in excise for refinery products cleared from refineries based in the North-east region, including that of BRPL. This benefit would continue till the notification remains in force.

Though IOC markets BRPL's petroleum products, the latter is planning to establish a modern retail outlet on the national highway between Guwahati and Shillong. Other products are marketed by BRPL on its own through its nationwide retail network.

For Q3 ended 31 December 2002, BRPL reported a net profit of Rs 6 crore (as against a loss in the corresponding period last year) on sales of Rs 423.90 crore.