NEW DELHI: Privatisation-bound Bharat Petroleum Corporation Ltd (BPCL) on Thursday said it has no intention to market part of its stake in Petronet LNG Ltd and Indraprastha Gas Ltd (IGL) to assist its new owner prevent making an open source for both gas businesses.
BPCL retains 12.
5 percent of their shareholding from India’s largest liquefied natural gas importer, Petronet, along with a 22.
5 percent stake in town gas merchant, IGL.
It’s a promoter of the listed firms and holds board positions.
According to the legal standing assessed by the Department of Investment and Public Asset Management (DIPAM) – that the section conducting the procedure for the selling of their government’s whole 52.
98 percent stake in BPCL – that the acquirer of BPCL might need to make open offers into the minority shareholders of Petronet along with IGL for its acquisition of 26 percent shares.
To bailout the brand new owner of BPCL paying extra Rs 19,000 crore in receptive offers for companies in which it will not have any operation management, it had been proposed that BPCL sell part of its shareholding from the 2 businesses and lose promoter standing.
“We don’t have any intention to pare our bet at IGL or even Petronet.
Any drop-down will probably be worth destruction,” BPCL manager (Finance) N Vijayagopal stated at a sales call with shareholders.
He said according to SEBI regulations, there’ll be a demand for the newest promoter of BPCL to create an open source for IGL and Petronet.
BPCL and the authorities are operating with SEBI to determine”how the need for this open supply is averted,” he said without providing details.
“We’re working together with the authorities of India to find that the worth of BPCL is secure,” he explained.
Questions by shareholders in the phone came in reaction to the PTI report of May 25, about the bet sale movement and BPCL wasn’t in favour of it because it might lead to substantial worth erosion to the business.
Asked when the necessity of an open deal for IGL and Petronet may be an impediment at privatisation of BPCL, ” he stated,”We don’t have any intention to market down.
Another issue is hypothetical.
” Because BPCL is a promoter of those 2 businesses and since there’s a shift in possession of this promoter company, an open source is triggered under SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.
The thinking from the authorities is the available provides for Petronet and IGL may dissuade bidders that are largely outpacing BPCL’s oil maximizing resources and 22 percent share of the gas advertising firm it controls, sources said.
The government’s 52.
98 percent stake in BPCL is valued at approximately Rs 54,000 crore in the present share price.
The need for creating the open offer for an additional 26 percent to minority shareholders of the corporation is going to cost an extra Rs 26,700 crore.
In addition to it, an open source for a 26 percent stake in IGL could price the acquirer an extra Rs 9,300 crore along with a similar deal for Petronet would cost approximately Rs 9,400 crore.
To prevent an open source, the Securities and Exchange Board of India (SEBI) has been chased to provide exemption done when ONGC obtained a government stake in HPCL.
However, in the event of this ONGC-HPCL agreement, the promoters of the companies were exactly the same i.
e.
the authorities of India and also there was not a change of possession per se.
Vijayagopal reported a digital data room was started April 10, to get those qualified bidders to perform due diligence on the business.
Mining-to-oil conglomerate Vedanta and private equity companies Apollo Global and that I Squared Capital’s arm Believe petrol will be at the race to get the government’s stake in BPCL.
The bidders, he explained, have wanted talks with the business management in addition to physical review of important centers.
When these are completed, the lien might be requested to create a financial deal, he explained, adding this may occur sometime at the October-December quarter.
Publish share purchase agreement (SPA) has been shared with all the bidders, he explained.
The bet purchase in India’s secondhand gas retailer is vital to plans to increase a list Rs 1.
75 lakh crore from disinvestment earnings in financial 2021-22 (April 2021 into March 2022).
BPCL provides the purchaser possession of about 15.
33 percent of India’s oil refining capacity and 22 percent of their fuel advertising share.