GAIL (India) Ltd.

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.