Gujarat State Petronet Ltd today said it will raise its stake in Sabarmati Gas Ltd by 13.71 per cent to 27.47 per cent for an undisclosed amount.
In a regulatory filing, GSPL said it has "entered into the share purchase agreement with the financial investors of Sabarmati Gas Ltd and SGL, wherein, GSPL has agreed to purchase 27.43 lakh equity shares having face value of Rs 10 per cent".
The stake that GSPL is buying constitutes 13.71 per cent of the total paid-up equity share capital of SGL.
"Upon fulfillment of the conditions of the share purchase agreement, SGL will become an associate company of GSPL with GSPL holding 27.47 per cent of the fully paid up equity share capital SGL," it said.
Sabarmati Gas retails CNG to automobiles and piped cooking gas to households in Gandhinagar, Mehsana and Sabarkantha in northern Gujarat.
State-owned Bharat Petroleum Corp Ltd (BPCL) holds 25 per cent stake in the company while Gujarat State Petroleum Corp (GSPC) has 11.25 per cent. GSPL currently holds 13.75 per cent stake.
India Infrastructure Development Fund (IIDF), India Infrastructure Fund and IFCI Venture Capital Funds hold 16.62 per cent each.
GSPL did not state who it is buying the stake from and for what consideration.
