Government is likely to invite financial bids for selling its 33.58 per cent equity in petro fuel retailer IBP Co Ltd by the end of July. Government has finalised the draft shareholders' agreement and the bidders, who have submitted the initial Expression of Interest (EoI), have been asked to give their comments on it, official sources said in New Delhi.
Government of India currently holds 59.58 per cent equity in the profit-making IBP, which has about five per cent share in India's retail petroleum product marketing with over 1500 outlets. Indian Oil Corporation (IOC), Reliance, Royal Dutch Shell, Bharat Petroleum Corporation Ltd (BPCL), Hindustan Petroleum Corporation (HPCL), Nagarjuna Fertilisers Ltd, Essar Oil, Global Oil majors Caltex, Totalfina of France and BHP of Australia are in the fray to take over the lucractive marketing company.
Shareholders' agreement detailing terms of sale would be signed with the potential strategic bidders by end June, after which financial bids would be called, sources said adding that financial bids would be evaluated by the department of disinvestment and IBP disinvestment consultant HSBC securities in just over a month's time to shortlist strategic buyers.
IBP is the first oil company in the country chosen by the government for privatisation after protracted wrangling between the ministries of petroleum and disinvestment with the former opposing the move saying that oil sector be termed as strategic for maintaining oil security of the country. Bureau Report