Synopsis: BP will sell 65% of Castrol to Stonepeak for a $10.1 billion enterprise value, netting $6 billion to cut debt, forming a joint venture while retaining a 35% stake and future exit option.
This company is engaged in the business of manufacturing & marketing of automotive and industrial lubricants and related services is now in the spotlight after BP sold 65% in its parent company to Stonepeak.
With a market capitalisation of Rs. 18,729 cr, the shares of Castrol India Ltd are currently trading at Rs. 189 per share, surging 9% in today’s market session, making a high of Rs. 202.50, up from its previous close of Rs. 185.90 per share.
BP agrees to sell a 65% shareholding in Castrol to Stonepeak
BP has agreed to sell a 65% stake in Castrol to Stonepeak for an enterprise value of $10.1 billion, implying an EV/LTM EBITDA of 8.6x. The deal will generate net proceeds of $6.0 billion for BP, including $0.8 billion for prepaid future dividends on BP’s retained 35% stake. The total equity value of Castrol is $8.0 billion after adjustments.
The transaction will create a new joint venture with 65% Stonepeak and 35% BP ownership, allowing BP to retain exposure to Castrol’s growth. BP may sell its remaining 35% stake after a two-year lock-up period. Completion is expected by end-2026, subject to regulatory approvals.
This sale is part of BP’s $20 billion divestment program, with total completed proceeds now around $11 billion, which will be used to reduce net debt toward a $14–18 billion target by 2027 (BP’s net debt was $26.1 billion at Q325).
BP emphasizes that the transaction supports its reset strategy, which is simplifying the portfolio, focusing on leading integrated businesses, strengthening the balance sheet, and enhancing cash flow and shareholder returns.
Stonepeak highlights Castrol’s strong market position, 126-year brand heritage, and mission-critical products, expressing commitment to supporting the business’s continued growth alongside BP. BP is the parent company of Castrol Global, which in turn is the parent company of Castrol India Ltd.
About Stonepeak
Stonepeak is a leading alternative investment firm with $80 billion AUM, focusing on infrastructure and real assets. It aims to create value through defensive, hard-asset investments, offering capital, operational support, and partnership across sectors including digital infrastructure, energy and energy transition, transport and logistics, and real estate.
About Castrol India Ltd
Castrol India Ltd is a leading lubricant manufacturer and distributor in India, and a subsidiary of Castrol Global, which is part of the BP Group. With a strong brand presence and wide distribution network, the company serves automotive, industrial, and marine segments, and is known for its premium lubricants and consistent performance in the Indian market.
For Q2FY26, the company reported 6% YoY growth in sales to Rs. 1,363 Cr, while EBIDT increased 13% to Rs. 323 Cr. Net profit rose 10% to Rs. 228 Cr, and EPS also grew 10% to Rs. 2.30.
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