Gujarat Gas and bidding process

Marketmen would keenly be watching the outcome of bidding process of Gujarat Gas. British Gas bid submission deadline for stake sale in its subsidiary Gujarat Gas Company is ending on March 15. Earlier, it was scheduled on February 29, but deferred to March 15, to allow more time for bidding companies to discuss the matter with their respective boards and decide on the bidding process. BG has decided to exit the city gas distribution business of Gujarat Gas in which it has a 65 per cent stake. BG expects to raise over Rs 3,000 crore through this divestment. A consortium of Bharat Petroleum, Gujarat State Petroleum Corporation and Oil and Natural Gas Corporation and private Sector bidders including Adani Group and Torrent Power are reportedly keen to buy out the stake. Media reports have it that even Actis and European strategic energy and utility companies E.ON and GDF Suez are also in the fray. The stock closed at Rs 422.75 on the BSE on Friday. If BG Group's stake sale happens at a premium to the prevailing market rate, minority shareholders would also benefit from the mandatory open offer for 26 per cent stake from public shareholders.