Gujarat Gas Company (GGCL) has shed nearly 3% in late-morning trades after BG Group Plc announced its plans to sell stake in the company.
Though the British exploration major has not yet decided on how much it wants to sell in the company, a person close to the development said the parent may completely exit the venture if it gets a good valuation.
In a statement issued to the Bombay Stock Exchange on Tuesday, GGCL said the company had been informed by its majority stakeholder it had started a process that may result in divesting its shareholding in GCCL.
BG’s biggest investment in India is in the upstream gas and oil producing fields of Panna, Mukta and Tapti, where it holds 30% equity along with Reliance Industries Ltd and the Oil and Natural Gas Corporation. The group is looking at investing more on the upstream side in India.
GGCL was originally promoted by the Gujarat government and the Mafatlal Group. BG Group acquired a majority stake in GGCL in 1997.
The scrip opened at Rs 422 and has so far, touched thw day's low at Rs 408. Around 19,713 share changed hands on the BSE counter till 1100 hours.
