IOC & BPCL to have 26% each share in GAIL for Rs 20,000 each

Public Sector Undertaking(PSU) companies Indian Oil Corporation(IOC) and Bharat Petroleum Corporation Ltd. (BPCL) may pay Rs. 20,000 Crore each(Total of Rs. 40,000 Crore of both) to have partnerships of 26% & 26% respectively in Public Sector Company Gas Authority of India Ltd. (GAIL).Its purpose is to make unified companies in petroleum sector as declared by Finance Minister(FM) Arun Jaitely. After it IOC & BPCL have separately offered to acquire 54.89% share in largest company in India (GAIL) for its marketing and transportation. A prime source has said that, as the Government is of opinion that instead of amalgamation of of oil companies, it is better to transfer ownership to financially strong PSUs. That is why it preferable to distribute equal shares to IOC and BPCL. Market share price of GAIL presently is Rs. 440.85 per share and hence the partnership share amounts to Rs. 41,000 Crore. This year in January ONGC purchased 51.1% partnership in HPCL for Rs. 36,915 crore. But after it this deal HPCL was not amalgamated in ONGC and it was registered as separate company and HPCL is now partner of ONGC. HPCL is now having two of its directors with directors of ONGC in it. This option may be adopted for IOC and BPCL. IOC and BPCL may have one director each in the list of directors. Of course the Government has yet not taken any decision about it, that also how much share of partnerships will be provided to IOC and BPCL respectively. Ref. : https://www.khabarindiatv.com/paisa/business-ioc-and-bpcl-may-buy-26-per-cent-stake-each-in-gail-573576 --- Dated: Mar'18,2018