'No intention to sell stake in Petronet, IGL'

New Delhi: Privatisation-bound Bharat Petroleum Corporation Ltd (BPCL) on Thursday said it has no intention to sell a part of its stake in Petronet LNG Ltd and Indraprastha Gas Ltd (IGL) to help its new owner avoid making an open offer for the two gas companies.

BPCL holds 12.5 per cent of the shareholding in India's largest liquefied natural gas importer, Petronet, and a 22.5 per cent stake in city gas retailer, IGL. It is a promoter of both the listed companies and holds board positions.

As per the legal position evaluated by the Department of Investment and Public Asset Management (DIPAM) - the department running the process for the sale of the government's entire 52.98 per cent stake in BPCL - the acquirer of BPCL will have to make open offers to the minority shareholders of Petronet and IGL for the acquisition of 26 per cent shares.

To bailout the new owner of BPCL spending additional Rs 19,000 crore in open offers for firms where it will have no operation control, it was suggested that BPCL sell a part of its shareholding in the two firms and shed promoter status.

"We have no intention to pare down our stake in IGL or Petronet. Any paring down will be value destruction," BPCL Director (Finance) N Vijayagopal said at an earnings call with investors.

He said as per SEBI regulations, there will be a need for the new promoter of BPCL to make an open offer for IGL and Petronet.