Indian Oil Corporation, Reliance Industries and detergent maker Nirma today submitted their price bids for acquiring 26 per cent government equity and management control of Indian Petrochemical Corporation Ltd (IPCL). Reliance's bid has not been affected by the arrest of its officials on charges of violating the Official Secrets Act.
The reserve price for the government's equity in IPCL is expected to be worked out on Wednesday. The inter-ministerial group will meet thereafter to evaluate the price bids.
The remand of two Reliance officials to judicial custody today and the issuance of a non-bailable arrest warrant against group president V Balasubramaniam on charges of violating the Official Secrets Act, however, are unlikely to have an impact on Reliance's bid for IPCL. "As of now, the company's bid is not affected," government officials said. "If at a later stage, the company is indicted and found to have violated the guidelines, we will take appropriate action," they added.
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Upstream major Oil and Natural Gas Corporation (ONGC) today said "if IOC makes a winning bid, we will collaborate with it."
"We have had talks with IOC on a joint bid for IPCL. Various modalities and options have been discussed but no decision has yet been taken," ONGC chairman and managing director Subir Raha said.
The race for IPCL is primarily between IOC and Reliance, which are understood to have bid aggressively. For IOC, the acquisition will be an entry into the lucrative petrochemical business while for Reliance a successful bid will take its market share in refining to over 80 per cent.