The company may offload 50 per cent stake to strategic partners, sources close to the development said. It has roped in SBI Caps as investment banker for the deal.
In April 2006, BPCL and GSPC had signed a joint venture agreement to form Sabarmati Gas with equal equity participation. The company was formed in June 2006 with an authorised capital of Rs 100 crore for implementing the city gas (CNG) distribution project targeting the household and automobile sectors in Gandhinagar, Mehsana and Sabarkantha districts.
The company has also chalked out a business development plan with a projected cost of Rs 410 crore. 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. "The company is planning to raise the remaining amount from financial institutions through equity participation," the sources added. Sabarmati Gas is currently supplying natural gas to various industrial units in Santej, Karoli, Khatraj, Vadsar and Bhat areas of Gandhinagar district. These units are engaged in the manufacture of ceramics, papers and polyplast bags. Supply of gas has also started to Mother Dairy at Bhat.
A dedicated CNG station for Gujarat State Road Transport Corporation (GSRTC) has been commissioned near Pathikashram in Gandhinagar. The company might even consider an IPO after three-four years, sources close to the development said.