Reliance, IOC, Cairn India in race for HPL

05-Aug-13

Six companies are likely to submit price bids early next month to buy about 31% stake in beleaguered Haldia Petrochemicals Ltd (HPL). RIL, IOC, Vedanta Resources through subsidiary Cairn India, state-owned Oil and Natural Gas Corp (ONGC), GAIL India Ltd and Jindal Steel and Power Ltd had submitted expressions of interest to buy a 31% stake in HPL held by the West Bengal government. The six companies are doing due diligence and they will be asked to submit price bids in September, as per sources. Purnendu Chatterjee-led The Chatterjee Group (TCG), a joint promoter of HPL, will have the right of first refusal to match the highest bidder. TCG is currently in a legal battle with the state government over control of the company. TCG holds 41% stake in HPL, IOC holds 8.89%, the balance is with financial institutions and Tata Group companies Tata Motors and Tata Power.