Gujarat Gas Ltd., the country's largest city gas distribution company, is in talks with GAIL Ltd. to buy its entire 50 percent stake in Vadodara Gas Ltd.
“The acquisition cost is close to Rs 200-250 crore and is expected to be completed in nearly a month,” Gujarat Gas Chairman JN Singh told BloombergQuint in an interview, adding that the acquisition would aid in expanding its footprint in the industrial areas in Gujarat.
The news was first reported by newspaper Mint yesterday, quoting three senior government officials close to the development.
Singh said that the company is bidding for the ninth round of the city gas auctions and plans to expand its presence in Gujarat and rest of India going forward. The scheduled to take place mid-July, he added.
Shares of Gujarat Gas rose as much as 1.9 percent to Rs 750 apiece in early trade.
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