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Government to invite IPCL bids in early Feb

The government is likely to invite price bids for a controlling stake in Indian Petrochemicals Corp Ltd early next month, an official at the state-run company said on Monday.

The official said the price bids would be called soon after all the prospective suitors finished their due diligence of the company.

Reliance Industries Ltd, India's largest petrochemicals company and a flagship of the powerful Reliance group, state-run refining giant Indian Oil Corp and detergent maker Nirma are in the race to acquire the 26 per cent stake along with management control on offer in IPCL.

The IPCL official, who asked not to be named, told Reuters that Reliance was likely to complete its due diligence of IPCL's assets this week, enabling the government to advance its plan to call for price bids by at least two weeks.

IOC and Nirma have already completed their due diligence of IPCL, the nation's second largest petrochemicals company.

An IPCL official had said earlier this month the due diligence would be completed only in mid-February and price bids invited in the third week of February.

The government, which now owns 59.75 per cent of IPCL, intends to sell another 25 per cent of its holding later through open market sale of shares, with the winner of this round having the right of first refusal to buy them.

IPCL's three plants -- two in Gujarat and the third in neighbouring Maharashtra -- have a capacity to produce over a million tonnes of petrochemical products annually.

The company is among 13 state-run companies which the government plans to privatise this financial year. It hopes to raise Rs 120 billion from privatisation proceeds this year.

IPCL shares ended Monday 0.74 per cent higher at Rs 60.60 on the Bombay exchange whose 30-share benchmark index closed 0.44 per cent lower.

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