GAIL Acquires 26% Stake in ONGC Tripura Power; Shares Advance

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GAIL Acquires 26% Stake in ONGC Tripura Power; Shares Advance

By Malvika Gurung -- The state-owned natural gas transmission company GAIL (NS: GAIL ) (India) has completed the acquisition of a 26% stake in ONGC (NS: ONGC ) Tripura Power Company or OTPC from the infrastructure development and finance company, Infrastructure Leasing and Financial Services (IL&FS) for Rs 1,227 crore.

IL&FS has been heavily in debt and with the ONGC Tripura Power sale made, the company has resolved a debt of Rs 3,656 crore of the total dues of Rs 99,000 crore, as of October 2018.

The 26% stake held by IL&FS in OTPC has been through two subsidiaries: 12% stake was held by IL&FS Energy Development Company and another 14% by IL&FS Financial Services Ltd.

After acquiring the IL&FS’ share in the company, GAIL now holds 26% in OTPC, while Indian Infrastructure Fund II holds 23.5%, the Government of Tripura holds 0.5%, and other shareholders including ONGC hold 50%, states a report.

OTPC has an aggregate debt of Rs 3,000 crore, which will be serviced under the new shareholding.

Shares of GAIL were last seen trading 1.36% higher at Rs 134.6 apiece on Tuesday.

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  • Gautam BR @Gautam BR
    It is good sign for company
    Like 0

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