Bharat Petroleum Corporation Limited : BPCL may sell a part of its stake in two gas companies to relinquish promoter status

Bharat Petroleum Corporation Limited (BPCL),

Bharat Petroleum Corporation Limited which is undergoing privatization process, may sell a part of its stake in two gas companies Petronet LNG and Indraprastha Gas (IGL) to relinquish promoter status.

Sources informed that by doing this, the new owner of BPCL will not need to bring an open offer for these two gas companies.

BPCL holds 12.5 per cent in Petronet, India’s largest liquefied natural gas (LNG) importer and 22.5 per cent in gas marketing company IGL.

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BPCL is the promoter of both the listed companies and is included in the board.

Three sources privy to the case said that as per the legal status assessed by the Department of Investment and Public Asset Management (DIPAM),

the acquirer of BPCL has to make an open offer to minority shareholders for the acquisition of 26 per cent shares in Petronet and IGL.

Will be. DIPAM is in the process of selling the entire 52.98 per cent stake in BPCL to the government.

This is because BPCL is the promoter of both the companies and since there has been a change in ownership of the promoter firm,

an open offer has to be made under SEBI (Substantial Acquisition and Control of Shares) Act, 2011.

Sources said that the need for BPCL to sell a part of its stake in both the companies and eliminate the promoter’s position would eliminate the need for an open offer.

Bharat Petroleum Corporation Limited (BPCL) is not in favor of selling stake

However, BPCL is not in favor of selling the stake and says that the promoter’s status

and leaving the post of director will significantly reduce the value of the company.

On the other hand, the government is of the view that the condition of open offer for Petronet

and IGL may deter bidders who are only eyeing BPCL’s refining and marketing business. A BPCL spokesperson declined to comment on the news.