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Govt invites bids for divesting stake in IBP

The government on Tuesday invited bids for divesting its 33.58 per cent stake in petroleum marketing company IBP to a strategic partner.

Expressions of interest has been invited from interested parties who intend to pick 33.58 per cent government stake in IBP, by February 28, 2001, official sources said.

The Government of India currently holds 59.58 per cent of the equity capital of IBP with the remaining shares being help by employees (0.70 per cent), banks and financial institutions (23.41 per cent) and others (16.31 per cent).

The GoI intends to divest 33.58 per cent shareholding in IBP along with management control to a strategic partner and has appointed HSBC Securities and Capital Markets as advisor to advise and manage the divestment process, sources said.

Though traditional and principal business of IBP is storage, marketing and distribution of petroleum products, it also has additional business interests in the engineering and chemical sectors.

At present IBP also has a 61.8 per cent owned subsidiary, Balmer Lawrie & Co Ltd which is into greases, lubricants, speciality chemicals, manufacture of freight containers, trading, leasing, travel and tours and cargo.

In addition, IBP holds interest in three joint ventures - Indian Oil Tanking Ltd (25 per cent), Numaligarh Refinery Ltd (19 per cent) and Petronet India Ltd (2 per cent), sources said, adding the equity held by IBP in Balmer Lawrie and the Numaligarh Refinery would be excluded from IBP and the divestment.

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