State-run public sector natural gas transmission company Gujarat State Petronet Ltd (GSPL) has agreed to acquire an additional 13.71 per cent equity stake in Sabarmati Gas Ltd (SGL) from unnamed private investors for an undisclosed amount, as per a stock market disclosure.
GSPL already owns 13.76 per cent equity stake in SGL.
"Upon fulfilment of the conditions of the share purchase agreement, SGL will become an associate company of GSPL with GSPL holding 27.47 per cent of the fully paid up equity share capital SGL," it said in the disclosure.
At present, state-owned Bharat Petroleum Corp Ltd (BPCL) holds a 25 per cent stake in the company while Gujarat State Petroleum Corp (GSPC) has 11.25 per cent.
The remaining is held by PE investors—IFCI's SME focused fund, UTI Capital's India Infrastructure Development Fund and IDFC Alternatives. These investors had picked 16.6 per cent stake each in SGL in 2009.
GSPL did not share details of the selling shareholders or the transaction amount.
Emails sent to the companies seeking further information on this also did not elicit any response by the time of filing this article.
Sabarmati Gas retails CNG to automobiles and piped cooking gas to households in Gandhinagar, Mehsana and Sabarkantha in northern Gujarat.
It was incorporated on June 6, 2006 by BPCL along with GSPC/GSPL to carry on city gas distribution (CGD) business in the three North Gujarat districts.
Prior to the formation of the JV, BPCL was independently carrying on CGD business in the above districts. Subsequent to the formation of JV, BPCL stopped its own CGD operations in these districts and transferred the assets to the JV.
For the year ended March 31, 2015, the company reported an operating income of Rs 911.04 crore and profit after tax of Rs 110.84 crore against an operating income of Rs 942.69 crore and profit after tax of Rs 31.15 crore during FY14.
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