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Gail backs out of race to acquire BG stake in Gujarat Gas company Ltd

18 Jan 2012 Evaluate

State-run Gail India finds the valuation of BG's stake in Gujarat Gas Co too high to make business sense to be in the race as the company has a market capitalisation of 5,000 crore and annual net profit is about 250 crore. Gail, which aspires to be a countrywide player in the city gas distribution domain through its subsidiary Gail Gas Ltd, had initially considered acquiring BG's 65.12% stake in Gujarat Gas. At current market price, BG's stake in Gujarat Gas is valued around 3,000 crore and the company would expect some premium over that, making it a costly buy. Besides, the successful bidder is required to make a mandatory open offer for minimum 26% stake.

GAIL India Share Price

156.85 -0.95 (-0.60%)
20-Apr-2026 09:41 View Price Chart
Peers
Company Name CMP
GAIL India 156.85
Gujarat Gas 362.75
Indraprastha Gas 167.25
Mahanagar Gas 1124.30
Adani Total Gas 626.00
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