BPCL informed exchanges on 29 June of a deal to buy a 40% stake in Tiki Tar and Shell India for Rs 85 crore, before closing the day in red.

The company being acquired makes bitumen-based products used in road construction and airport runways. Think of bitumen as the black binding material that holds roads together.

Its product range includes modified bitumen, rubber-modified bitumen and emulsions, and it also exports to Nepal, Bhutan and Bangladesh. Tiki Tar and Shell India was incorporated in October 2019.

The seller is Shell Overseas Investments B.V. Once the transaction closes, BPCL will become an equal joint venture partner alongside the existing shareholder.

The acquisition has already received approval from DIPAM, the government body that oversees public sector investments.

The deal is expected to close within 90 days. The transaction is not a related-party deal.

BPCL said the acquisition fits its strategy of expanding into value-added bitumen, a segment seeing strong demand as India spends heavily on highways and infrastructure.

Tiki Tar and Shell India reported revenue of Rs 404.6 crore in FY26, down from Rs 545.2 crore in FY25 but well above the Rs 317.8 crore posted in FY24.

For context on BPCL’s recent performance: the company posted a net profit of Rs 3,192 crore in Q4FY26, partially weighed down by a one-off impairment charge related to its subsidiary Bharat PetroResources.

BPCL closed at Rs 300.80 on NSE on 29 June, down 2.89% from the previous close of Rs 309.75.

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