After selling its stake in KG gas block to ONGC for $1.2 billion, Gujarat State Petroleum Corp (GSPC) is mulling major financial restructuring including trimming stake in some businesses such as LNG and portfolio readjustment, its managing director J.N. Singh said.
The Gujarat government firm, which is saddled with close to ₹20,000 crore of debt, has a large gas trading business, gas transmission pipelines and city gas business.
“We are going through our entire financial restructuring exercise... Options are some dilution of the stake, some dilution of the equity [in some businesses],” Mr. Singh told PTI in an interview.
Refusing to elaborate, he said various options of “financial reconstruction of the company and portfolio readjustments” were being looked at.
“It will take some time [to take it to the board]. We are in the process [of doing so]. We have set up an internal sub-committee of the board to look at this. Prior to the next financial year [it should be before the board],” he said.
GSPC has already offered to IOC its entire 50% stake in the ₹4,500-crore LNG import terminal being set up at Mundra in Gujarat in partnership with the Adani Group. The 5 million tonne a year import terminal is 90% complete. Asked if divesting stake in other ventures was an option, Mr. Singh said, “That is one of the things we are considering.”
