State-run public sector natural gas transmission company Gujarat State Petronet Ltd (GSPL) has completed the acquisition of 13.71 per cent equity stake in Sabarmati Gas Ltd from financial institutions, raising its total holding in the company to 27.5 per cent, according to a stock market disclosure.
The company had to shell out around Rs 56.23 crore (approximately $8.19 million) for the total stake. Following this, Sabarmati Gas has become an associate firm of GSPL.
Before this transaction, GSPL had a stake of 13.75 per cent in Sabarmati Gas. Besides, state-owned Bharat Petroleum Corp Ltd (BPCL) held a 25 per cent stake in the company, Gujarat State Petroleum Corp (GSPC) has 11.25 per cent, while the balance 50 per cent stake was held by financial investors.
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 financial year 2014-15, Sabarmati Gas had clocked gross revenues from operations of Rs 940 crore and a net profit of Rs 111 crore.