IBP to divest stake in IOTL

By Malabika Bhattacharya

KOLKTA, SEPT. 21. IBP Co will disinvest its stake in Indian Oiltanking Ltd. (IOTL) in favour of Indian Oil Corporation (IOC). With this disinvestment, IOC and Oiltanking GmbH of Germany will become equal partners in IOTL. This follows the Centre's decision in October last to bring down its stake in IBP from the current 59.58 per cent to 26 per cent.

IOTL provides independent terminalling facilities to the petroleum sector. Besides, it runs terminals, helps in operations and maintenance and provides consultancy services.

IOC and IBP hold 25 per cent stake each in IOTL. The German firm holds the remaining 50 per cent. The vaulation of IBP's shares in IOTL is being worked out with IOC. Till date, IBP's ivestment in IOTL is Rs. 27.50 crores.

IOTL has created a state-of-the-art petroleum storage facility at Navgarh, close to the Jawaharlal Nehru Port in Navi Mumbai. The terminal, with a capacity of 2.35 lakh km, has an in-built facility to deal with petroleum products transported by road, rail, ship and pipeline.

Apart from the Navgarh terminal, IOTL runs a number of oil industry-related terminals including IBP's Sidhpur (Gijarat), Sangrur (Punjab) and Kondapally (Andhra Pradesh).

IBP had already withdrawn from the Numaligarh Refinery in Assam by transfering its 19 per cent stake in the refinery to Bharat Petroleum.

Send this article to Friends by E-Mail

Section  : Business
Previous : 16:1 swap for ITC Bhadrachalam-ITC merger