Sabarmati Gas to sell 50% stake for Rs 80 cr

Sabarmati Gas, a retail joint venture between Bharat Petroleum Corporation (BPCL) and Gujarat State Petroleum Corporation (GSPC), has decided to sell about 49.8 per cent stake to three financial institutions for Rs 80 crore. The company has got shareholders approval at a recent EGM to sell stake to IDFC Project Equity Company, IFCI Venture Capital Fund and Unit Trust of India (UTI).

The deal was brokered by State Bank of India (SBI) Caps.

"The three firms will be issued 1 crore shares of Rs 10 face value. To be issued at Rs 70 premium per share, the three companies will pay Rs 80 per share. Each firm will get about 16.60 per cent equity stake in Sabarmati Gas," a senior company official told Business Standard.

Twelve individual shareholders own about 0.12 per cent in the company. GSPC and BPCL each hold an equal 25 per cent stake in the firm.

The company has chalked out a business development plan of about Rs 410 crore.

Formed in June 2006 with an authorised capital of Rs 100 crore, Sabarmati Gas is into implementation of city gas distribution targeting especially the household sector in Gandhinagar, Mehsana and Sabarkantha districts. So far, it has catered to over five thousand household sector for piped gas.

"Our aim is to touch one lakh households in five years' time. We will add about 20k households every year," an official said. Sabarmati Gas currently runs 10 CNG stations in Gujarat and has plans to add another 25 outlets.

In December 2007, SBI Capital along with Oriental Bank of Commerce, Bank of Baroda, Punjab National Bank and State Bank of Travancore had arranged a term loan of Rs 270 crore for Sabarmati Gas.

Recently, the company has been allocated 77,593 cm/d of D6 gas.

With about 4.5 lakh mmscmd of gas, Sabarmati Gas also supplies natural gas to various industrial units in Santej, Karoli, Khatraj, Vadsar and Bhat areas of Gandhinagar district.