Reliance Industries eyes 31% stake in Haldia Petrochemical Ltd

KOLKATA: Six companies, Reliance Industries Ltd, ONGCBSE -1.93 %, Indian Oil CorporationBSE -0.43 %, GAILBSE 0.59 %,Essar and CairnBSE -0.88 % have evinced interest in acquiring 31% in Haldia Petrochemical Ltd (HPL), portion of the stake that the West Bengal government holds. Confirming the names of the companies that have submitted their bids, West Bengal commerce and industries minister Partha Chatterjee said: "We have got a very good response for our stake in HPL. It shows the confidence of investors in Bengal." 

The Bengal government had initially floated expression of interest for 67.5 crore equity shares, which constituted 39.99% of paid up equity of the company. However, two TCG firms argued that out of 67.5 crore shares, 15.5 crore shares were disputed and approached the court. 

The Calcutta High Court then advised the state government to go ahead with the remaining stake which is around 31%. HPL co-promoter TCG holds 690 million equity shares which is 41% of the paid-up equity of the company. Indian Oil holds 8.89% equity stake as a strategic investor and 
the rest is with financial institutions and Tata Group companies Tata MotorsBSE -1.69 % and Tata Power. HPL has an accumulated loss of Rs 1,980 crore till March 31, 2012. 

In 2012-13, it had a net loss of Rs 907 crore and EBDITA loss of Rs 265 crore. The turnover of the company is Rs 9,600 crore. Over 50% of its peak networth has already been eroded as of March 31, 2013.