Indian Oil Corporation (IOC) plans to raise its shareholding in the cash strapped Haldia Petrochemicals (HPL) as the firm expects to reap many synergies with HPL.
IOC has a big refinery in the area neighbouring HPL. Also, its pipelines are connected with HPL, Indrajit Bose, Executive Director of IOC said. Indian Oil holds 8.89 per cent stake in HPL through an investment of Rs 150-crore in 2004.
West Bengal government, which holds nearly 40 percent stake in the firm, is expected to complete its due diligence process for offloading the stake by March 2013.
Bose said IOC would be keen to participate in the bidding for controlling stake in HPL. However, IOC won’t do aggressive biding as the company’s financial health is not too well, but we will participate, he said. Bose said that the oil major has not received any formal invitation from the state government.
The state government started its share sale drill and has appointed Delloite India to execute the divestment plan and a valuation process is going on.
Amidst all these developments, HPL’s financial health has been deteriorating as the lenders have dragged their feet to release any fresh fund. Reports also suggest that, the government is forcibly running the plant at 50 percent capacity of total installed capacity which is resulting in huge losses.
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