State-run Bharat Petroleum Corporation Ltd decided to transfer its gas business division to its subsidiary Bharat Gas Resources Limited.
“Board of Directors of our company at its meeting held today approved the proposal to transfer BPCL’s Gas Division on a going concern basis to Bharat Gas Resources Limited being a wholly owned subsidiary of BPCL by way of slump sale,” BPCL said in a regulatory filing.
Consideration for the gas business division will be determined as on the date of transaction, it added.
Total turnover of the gas business division for the year ended March 31, 2018 was Rs 3,371 crore, which was 1.22 per cent of the total revenue of BPCL during the same period.
BPCL expects to complete the transaction in the next 3-4 months.
It said the slump sale is being done “with a view to capture upcoming opportunities and to evolve as a prominent player in the natural gas market in the future”.
Shares of BPCL today closed at Rs 389.45, down by 2.21 per cent, at the BSE.