The Adani group and state-run oil companies have signed confidentiality agreements to bid for the controlling stake of the BG Group in India's biggest private-sector city gas distribution venture Gujarat Gas Co Ltd, industry officials said.
State-run companies, such as Oil India Ltd and GSPC, are among the companies that have signed non-discosure agreements with the BG Group for the controlling stake in Gujarat Gas which BG is exiting, they said. Torrent Power, which was also considering a bid, is learnt to have shelved its plan, sources said. Gail India Ltd has still not got the approval to bid.
BG Group's adviser Citigroup has opened a virtual data room with past 10 years financial records of GGCL besides gas contracts details.
"Interested bidders will submit their expression of interests by January 10. The picture would be clear once the bids are shortlisted," said GGCL chairman Hasmukh Shah. Incorporated in 1980, GGCL caters to around 3.50 lakh gas customers in South Gujarat market. Indian and foreign institutions and retail investors together hold 35% stake in GGCL.
BG Group is aiming to sell off its entire 65.12% stake in GGCL. Besides overall sentiment, the capitalisation of GGCL is eroded on account of rising dollar against Rupee, high LNG prices and BG Group's announcement to exit from CGD business in November last year.
On Tuesday, GGCL scrip traded at 355-360 on BSE, down from its 52 week high 463 on September 2, 2011. From almost 6,000 crore valuation in September last year, GGCL's capitalisation has fallen to 4,600 crore. The successful bidder will have to shell out close to 4,000 crore to acquire 65% stake of BG Group and make mandatory open offer to purchase 26% stake from the non-promoter shareholders.
State-run companies, such as Oil India Ltd and GSPC, are among the companies that have signed non-discosure agreements with the BG Group for the controlling stake in Gujarat Gas which BG is exiting, they said. Torrent Power, which was also considering a bid, is learnt to have shelved its plan, sources said. Gail India Ltd has still not got the approval to bid.
BG Group's adviser Citigroup has opened a virtual data room with past 10 years financial records of GGCL besides gas contracts details.
"Interested bidders will submit their expression of interests by January 10. The picture would be clear once the bids are shortlisted," said GGCL chairman Hasmukh Shah. Incorporated in 1980, GGCL caters to around 3.50 lakh gas customers in South Gujarat market. Indian and foreign institutions and retail investors together hold 35% stake in GGCL.
BG Group is aiming to sell off its entire 65.12% stake in GGCL. Besides overall sentiment, the capitalisation of GGCL is eroded on account of rising dollar against Rupee, high LNG prices and BG Group's announcement to exit from CGD business in November last year.
On Tuesday, GGCL scrip traded at 355-360 on BSE, down from its 52 week high 463 on September 2, 2011. From almost 6,000 crore valuation in September last year, GGCL's capitalisation has fallen to 4,600 crore. The successful bidder will have to shell out close to 4,000 crore to acquire 65% stake of BG Group and make mandatory open offer to purchase 26% stake from the non-promoter shareholders.
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