Financial Daily from THE HINDU group of publications
Friday, Aug 29, 2003
Financial Daily from THE HINDU group of publications Friday, Aug 29, 2003 |
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Corporate
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Announcements FIs plan to offload part stake in Indraprastha Gas Ambarish Mukherjee
New Delhi , Aug. 28 INSTITUTIONAL shareholders of Indraprastha Gas Ltd (IGL) will offload part of their holdings in the company through a public offer for sale only to non-residents. The company has filed an application with the Foreign Investment Promotion Board (FIPB) seeking permission for the institutional shareholders to sell part of their stake to non-resident shareholders only, through the book-building route. IGL has an equity base of Rs 140 crore. Out of this, the promoters, namely, GAIL India Ltd and Bharat Petroleum Corporation Ltd (BPCL), hold 22.5 per cent stake each while the Delhi Government holds another 5 per cent. Among the financial institutions, IL&FS Trust Company and Infrastructure Development Finance Company Ltd (IDFCL) hold 20 per cent each, while Unit Trust of India (UTI) has the remaining 10 per cent. The company has sought permission, on behalf of these institutional shareholders, to carry out a secondary transfer of shares up to a maximum of 41.43 per cent of the issued and paid-up equity of the company to persons resident outside India who have tie-ups, collaborations or technical tie-ups in India in the same field as IGL, on a repatriation basis. The application also seeks permission on behalf of the non-residents, including NRIs, OCBs, FIIs, foreign nationals and foreign companies, to purchase the shares on a repatriation basis. The company has also said in its application that they will follow the price determination norms as prescribed by the Securities and Exchange Board of India (SEBI). Sources said that the Department of Economic Affairs (DEA) has objected to the proposal. Officials said that the DEA is of the view that under an IPO, the eligible investors will only be domestic investors, FIIs registered with the SEBI and NRIs and that secondary transfer of equity shares to companies or persons outside India would not be permitted. Though no decision has been taken as yet, officials said that the promoters of the company would be consulted before the FIPB takes a final stand on the issue.
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