GIIC to sell Gujarat Heavy Chem stake

Gujarat Industrial Investment Corporation Ltd (GIIC), a government body which promotes investment in the state, has decided to offload its stake in Gujarat Heavy Chemicals Ltd (GHCL), a state government undertaking which produces soda ash.

GIIC will sell the stake through a bidding process and the minimum bid value will be above Rs 1 crore. The acquirer will be required to comply with the provisions of the Securities and Exchange Board of India (substantial acquisition of shares and takeovers) regulations, 1997, and subsequent amendments.

GIIC holds 12,696,324 equity shares in GHCL. This represents 13.35 per cent of the issued and paid-up share capital of the latter.

Persons interested in submitting an offer for the stake has to first register with the company by e-mailing information in a fixed format. GIIC has sought details like the name of the person, address, telephone and fax number, e-mail address, the dematerialised client ID number and the depository participant name and ID number.

After receiving registrations, for which the last date was Monday, GIIC will send the bidding process and an invitation to purchase GIIC equity in a prescribed form.

According to GIIC officials, only select registered investors will be allowed to bid for GIIC's stake in GHCL, which has a soda ash manufacturing plant at Veraval.

S K Shelat, chairman, GIIC, said a decision has been taken by GIIC to offload its stake in GHCL, but did not provide any more information.

"We have decided to sell the stake, but only the managing director will be able to provide more information," Shelat said.

GIIC managing director P D Vaghela was not available for comment.