GAIL receives CCI approval for acquiring 26 per cent stake in OTPC

GAIL (India) Limited, the country’s leading natural gas company, received approval from the Competition Commission of India (CCI) for the acquisition of a 26 per cent equity stake of Infrastructure Leasing and Financial Services (IL&FS) group in ONGC Tripura Power Company Limited (OTPC).  

For this acquisition, the company had submitted a bid on December 24, 2020. This was done after IL&FS had invited Expression of Interest (EOI) via an open advertisement. Post this, GAIL emerged as the H1 bidder in this bid. For completion of the transaction, the company needed the approval from Competition Commission of India (CCI), which was granted on September 9, 2021. Further, M/s Arpwood (advisor of IL&FS) provided the Letter of Intent (LOI) to GAIL.  

At present, the company is in the process of accepting this Letter of Intent (LOI) and entering into a Sale and Purchase Agreement (SPA) with IL&FS. Post these formalities, a proposal will be sent to National Company Law Tribunal (NCLT) for approval. 

At the time of market close, the share price of GAIL (India) Limited was trading at Rs 149.90, a decrease of 0.17 per cent from the previous day’s closing price of Rs 150.15 on BSE.