HPL stake transfer to IOC to be delayed

State govt cannot transfer the disputed shares till the matter is resolved in HC

Indian Oil Corporation has indicated to the West Bengal government that it wants the entire 40% stake in Haldia Petrochemicals at one go, a development which may delay the state government's stake sale in the troubled firm.

"We are keen to go ahead with the transfer of the remaining undisputed 31% stake. Tomorrow is the board meeting, but IOC is unlikely to agree on the deal without the 155 million shares in question," a board member of HPL representing the government said today.

If IOC wants the entire 40% stake, it might have to wait as without court approval the state government cannot transfer the disputed shares till the matter is resolved in the high court, he added.

Last month, IOC had emerged as the sole bidder for West Bengal government's 40% stake in Haldia Petrochemicals (HPL) which is held via the West Bengal Industrial Development Corporation.

The Chatterjee Group, the co-promoter, holds 41% stake in the company, Indian Oil Corp 8.89%, and the other shareholders are the Tata group and financial institutions.

In May, the state government had floated an expression of interest for selling 675 million shares or 39.99% of the paid-up equity in the company.

The Chatterjee Group had moved court seeking a stay on the stake sale, arguing that 155 million shares, or around 9% stake, of the total shares held by the government are disputed.

Consequently, the high court had issued a status-quo on the sale of disputed shares till November 26.

The next hearing at the court is scheduled on November 25.

Meanwhile, the HPL board would also discuss whether to inform the BIFR as the net-worth of the company had eroded by more than 50% in FY13.