State-owned gas utility GAIL India is keen to acquire 5.2% stake in Petronet LNG for Rs 600 crore. The Asian Development Bank (ADB) has offered to sell its 39 million shares or 5.2% stake in Petronet, which is valued at over Rs 614 crore.
To restrict the public sector holding in the company at 50% GAIL, Oil and Natural Gas Corp, Indian Oil and Bharat Petroleum hold a 12.5% stake each. Under the Share Holders' Agreement (SHA), the five have the first right of refusal over ADB stake.
For buying 5.2% stake of ADB, GAIL has proposed to the Oil Secretary G C Chaturvedi, who is the Chairman of Petronet. If other state firms are also interested, the ADB stake can be split equally among GAIL, IOC, ONGC and BPCL with each buying 1.3% stake. ADB stake being bought by state firms will turn Petronet into a public sector company with shareholding of state firms rising above current 50%. GAIL is agreeable to this as it will bring more accountability in running Petronet.
From 2004 ADB has held a 5.2% stake in Petronet LNG. ADB always looks to exit its equity investments once it believes that the development mission has been accomplished.
| Company Name | CMP |
|---|---|
| GAIL India | 162.95 |
| Gujarat Gas | 384.00 |
| Indraprastha Gas | 161.20 |
| Mahanagar Gas | 1112.00 |
| Adani Total Gas | 619.00 |
| View more.. | |
MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.
To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.
MoneyWorks4Me ensures this through: