Centre wants PSU control of Petronet, IGL to stay post BPCL open offer

The government may ask public sector promoters of IGL NSE -0.05 % and Petronet LNG NSE 0.56 % to make open offers to the minority shareholders of these companies either in concert or in competition with the strategic buyer of BPCL NSE 0.14 % to ensure state companies do not lose control of gas firms, said people familiar with the matter.

BPCL is a co-promoter of IGL along with GAIL NSE 0.69 % while in Petronet it shares ownership with GAIL, Indian Oil NSE 1.11 % Corporation and ONGC NSE 3.70 %. The buyer of the government’s entire majority stake in BPCL, currently on offer, will also become a promoter of IGL and Petronet, and so must make an open offer to the minority shareholders of these companies. Since these offers would add an extra financial burden on the BPCL buyer and may result in loss of state firms’ control over important gas firms, the government had sought a waiver on open offers from the market regulator.