No intention of selling stake in Petronet, IGL, says BPCL

Current Sebi regulations would require that the acquirer of the state-owned refiner make an open offer to minority shareholders of Petronet LNG and IGL due to its promoter status.

Divestment-bound Bharat Petroleum Corporation Ltd (BPCL) said on Thursday it is not considering reducing its stake in Petronet LNG (PLL) or Indraprastha Gas Ltd (IGL) to prevent a new owner from having to make an open offer to minority investors in both companies.

Current Sebi regulations would require that the acquirer of the state-owned refiner make an open offer to minority shareholders of Petronet LNG and IGL due to its promoter status. However, BPCL is working with the government to exempt a new owner from this requirement.

“BPCL has no intention to pare its stake, in either PLL or IGL,” said N Vijayagopal, Director (Finance), BPCL, adding that such a move would lead to value destruction for both BPCL as well as Petronet LNG and IGL. BPCL holds a 12.5 per cent stake in Petronet LNG, India’s largest LNG importer, and a 22.5 per cent stake in city gas distribution company IGL.

Meanwhile, oil marketing companies have hiked the price of petrol and diesel 14 times in May raising the price of petrol by Rs 3.3 per litre and that of diesel by Rs 4 per litre.

Petrol is currently retailing at Rs 99.94 per litre in Mumbai and diesel at Rs 91.87 per litre.

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