The UK-based British Gas Group (BG Group) is likely to divest its stake in its majority-owned Ahmedabad-based Gujarat Gas Company Ltd (GGCL), which has emerged as India's largest private sector natural gas transmission and distribution company in terms of sales volumes.
On Tuesday, GGCL informed the bourses that it has received intimation from the BG Group that they have commenced the initial process of evaluating the potential sale of their shareholding and that a final decision in this regard will be subject to further assessment.
On Tuesday, Gujarat Gas' share price on the BSE closed 4.58 per cent down at Rs 418.50.
Commenting on the development, Mr Shaleen Sharma, Managing Director, GGCL, said that Gujarat Gas is an “outstanding business” that has delivered excellent value to all its stake-holders.
“This announcement will have no effect on the day-to-day business of the company and I am confident that no matter what the outcome of this process, Gujarat Gas will continue to deliver value.”
Gujarat Gas is listed on the BSE, NSE and on the bourses in Ahmedabad and Vadodara.
BG currently holds 65.12 per cent of the company, estimated to be worth about Rs 3,500 crore. It is not clear if BG would sell its entire stake in GGCL.
Gujarat Gas, at present, distributes around 3.5 million metric standard cubic meters per day (mmscmd) of natural gas to nearly 3.30 lakh customers including industrial, commercial, and domestic, through a 3,200-km-long pipeline network. It also supplies CNG to 1.61 lakh vehicles through 42 retail outlets.
The BG Group had acquired stake in Gujarat Gas in 1997 from major shareholders like the Gujarat Industrial Investment Corporation (GIIC) and the Mafatlal Group.