New Delhi, June 8: The government will finalise the sale of 26 per cent stake in the state-owned Indian Petrochemicals Ltd (IPCL) in the next one month, a top disinvestment department official said. "We will like to do it (complete the sale) in the next one month," Pradip Baijal, secretary, department of disinvestment told PTI.He said the government has finalised the shareholders agreement, which will now have to be vetted by the companies bidding for the IPCL stake.
The disinvestment commission had suggested that the government should enter into a shareholders agreement with the strategic partner to ensure that the government's prior permission was taken in the event of the partner exiting from IPCL.
Advisor for the IPCL stake sale, BZW Barclays has shortlisted a consortium of IOC-Chatterjee group-Soros, and Reliance Industries-Mitsubishi combine for the 26 per cent stake.
Dow Chemicals, which was also in the fray, later pulled out from the bid, sources said.
Baijal said law ministry had raised some points on the shareholders agreement, which have been sorted out. The disinvestment commission had recommended the sale of 25 per cent stake in IPCL to a strategic partner through global competitive bidding.
Government at present holds 59.96 per cent stake in IPCL, which is the second largest petrochemical in the country after Reliance.
The commission had also warned that the strategic sale in the company should not lead to market dominance by any single player.
The government has so far disinvested about 40 per cent stake in the last eight years through IPO, GDR and conversion of rights and bonds.
IPCL on Wednesday reported a five-fold increase in its net profit to Rs 188.85 crore during 1999-2000 as against Rs 29.36 crore of the previous year.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.