Canada Pension Plan Investment Board and US private equity firm Stonepeak will launch an open offer to buy up to 26% stake in Castrol's Indian unit at a premium to the current trading price, according to a regulatory filing.
The open offer for 25.71 crore shares is being made following their deal to acquire the firm from parent BP.
Stonepeak and CPPIB will offer Castrol India shareholders ₹194.04 per share, representing a 2.5% premium to Wednesday's closing price. Castrol India shares were trading at ₹191.40 on the BSE on Friday.
1 December 2025
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"The Acquirer and the persons acting in concerts (PACs) hereby make this Open Offer to the public shareholders to acquire up to 25,71,71,820 (25.71 crore) equity shares, constituting 26% of the equity share capital, at a price of ₹194.04 per share aggregating to a total consideration of up to ₹4,990 crore," according to regulatory filing by Castrol India.
Britain's BP earlier this week struck a deal to sell a 65% stake in its Castrol lubricants business to US investment firm Stonepeak for roughly $6 billion, in a transaction that values the iconic unit at about $10.1 billion including debt. CPPIB is also investing up to $1.05 billion for an indirect stake. Castrol Ltd holds 51% of the equity share capital of Castrol India.
Under SEBI's takeover regulations, acquisition of 25% or more in a listed company triggers a mandatory open offer to purchase at least an additional 26% from public shareholders.
If the open offer goes through, the new owners will own 77% of Castrol India.
The divestment by BP is part of a targeted $20 billion asset sale programme through 2027, aimed at bolstering financial resilience amid underperformance in some segments and activist investor pressure.
"Transaction accelerates delivery of BP's reset strategy, will significantly strengthen its balance sheet, and advances strategy to focus on the downstream," the company had said on December 24.
BP retained a 35% stake in Castrol, providing exposure to the lubricant maker's growth plan while retaining optionality to realise further value in the future.
