GAIL India is planning to offload part of its 4.6% stake in Hong Kong-listed city gas distribution firm China Gas Holdings. GAIL is planning to keep minimum strategic interest in the company that will help it to retain its board position in China Gas. China Gas has exclusive rights to set up gas distribution projects in 42 cities in China.
The gas utility company, in 2005, had made a strategic investment of Rs 137 crore by acquiring 210 million shares of China Gas. GAIL had picked up equity in the company as China was keen to replicate Delhi’s success in using natural gas as a vehicular and domestic fuel in its cities, primarily Beijing, before the 2008 Olympics.
Recently, GAIL reported 28.72% fall in its net profit at Rs 808.17 crore for the quarter as compared to Rs 1133.78 crore for the same quarter in the previous year. However, total income from operations of the company increased by 15.98% at Rs 12899.80 crore for quarter under review as compared to Rs 11122.35 crore for the quarter ended June 30, 2012.
