GAIL invests Rs 2,100 cr in JBF Petrochemicals Limited
The investment by GAIL is expected to give a boost to the chemical industry in India, as well as help GAIL expand its portfolio of products and services.
GAIL Limited is a central public sector undertaking under the ownership of the Ministry of Petroleum and Natural Gas, Government of India.
New Delhi: GAIL, India's largest gas company, has made a significant investment of INR 2,100 crore ($283.7m) in JBF Petrochemicals Ltd, a private sector chemical company that it had acquired through bankruptcy proceedings.
In a company filling GAIL said, that as per the approved Resolution Plan, GAIL (India) Limited has infused Rs. 2, 101 crores (Equity - Rs. 625.00 crores and Debt - Rs 1,476.00 crore) towards Total Resolution Plan amount in JBF Petrochemicals Limited (JBFPL) on 01.06.2023.
Join PSU Connect on WhatsApp now for quick updates! Whatsapp Channel
Pursuant to the implementation of Resolution Plan:
a) 100% of the existing issued, subscribed and paid-up share capital of JBF Petrochemicals Limited (JBFPL) stands cancelled and extinguished;
b) New equity shares have been issued and allotted to GAIL (India) Limited against the equity contribution of Rs. 625.00 crore. Accordingly, JBFPL has become a wholly-owned subsidiary of GAIL with effect from 01.06.2023.
Read Also : Shatmanyu Shrivastava appointed as chief risk officer of LICThis investment makes JBF a wholly-owned subsidiary of GAIL, and it comes after JBF had become bankrupt in 2017, after defaulting on its loans. GAIL outbid a consortium of Indian Oil Corporation (IOC) and Oil and Natural Gas Corporation (ONGC) to acquire JBF, which was incorporated in 2008 to set up a purified terephthalic acid plant at Mangalore Special Economic Zone with a capacity of 1.25 million tonnes per annum.
The investment by GAIL is expected to give a boost to the chemical industry in India, as well as help GAIL expand its portfolio of products and services.
Read Also : Esconet Technologies ltd share price: surged by 2.35% to Rs 181 as company disclosed purchase order from ONGC