Gujarat Gas Co slips on valuation concerns

Gujarat Gas Company has slipped 8% to Rs 307 on reports that Gujarat State Petroleum Corp (GSPC), the sole bidder for global energy firm BG’s 65% stake in the company, has offer to pay less than its original bid.

“GSPC had earlier offered to pay Rs 300 per equity share of GGCL is willing to pay only Rs 250-260 per Gujarat Gas Company equity share to BG Group,” the report suggests.

The currency's fall, from about Rs 43 against the dollar last year to about Rs 56, has also hit valuation of the stake as BG's unit, Gujarat Gas Company, depends on import of liquefied natural gas (LNG) as domestic gas is scarce, added report.

The stock opened at Rs 333, has fallen almost 10% from day’s high of Rs 341 on the National Stock Exchange. As many as a combined 414,499 shares have changed hands on the counter so far, against an average sub 100,000 shares that were traded daily in past two weeks on both the exchanges.