reliance industries ltd (RIL) Snapshot

Reliance Industries Limited (BSE:500325) is likely to emerged as the most aggressive bidder and the frontrunner in the race to acquire West Bengal government's 31% stake in Haldia Petrochemicals Limited, Sources reported. Other companies interested in acquiring stake includes Oil and Natural Gas Corp. Ltd. (BSE:500312), GAIL (India) Limited (BSE:532155), Indian Oil Corporation Limited (BSE:530965), Cairn India Limited (BSE:532792) and Jindal Steel & Power Ltd. (BSE:532286). Reliance is the most cash-rich and has the biggest appetite for growth and investments among the players "All these factors make Haldia Petrochem an attractive proposition for Reliance,” a state government insider said.

Six major companies have shown interest in acquiring 31% stake in Haldia Petrochemicals Limited held by West Bengal Industrial Development Corp on behalf of West Bengal government. The companies includes Reliance Industries Limited (BSE:500325), Essar Oil Ltd. (BSE:500134), Oil and Natural Gas Corp. Ltd. (BSE:500312), Indian Oil Corporation Limited (BSE:530965), GAIL (India) Limited (BSE:532155) and Cairn India Limited (BSE:532792). Partha Chatterjee, West Bengal Commerce and Industries Minister, said, "We have got a very good response for our stake in HPL. It shows the confidence of investors in Bengal."

Haldia Petrochemicals Limited has got three formal interest from the companies after the filing of expression of interest (EoI). The companies include Essar Oil Ltd. (BSE:500134), Oil and Natural Gas Corp. Ltd. (BSE:500312) and Indian Oil Corporation Limited (BSE:530965). A top official of the West Bengal Industrial Development Corp (WBIDC) which hold 40% stake in Haldia, said Essar had written to it on the sale process, seeking more clarity. Deloitte has been hired as transactional advisor for valuation of HPL's shares. The final date for filing an EoI is June 10, 2013. Essar is the new name that is keen to participate. They are likely to place the bid on the last day,” the official said requesting anonymity. Indian Oil Corporation Limited (BSE:530965) remains the company with the most expressed interest. “They have written to us and their team has also visited the plant. They are more than keen to buy the state's stake in HPL, as they also have a refinery in the adjacent area,” the official added. IOC already has an 8.9% stake in Haldia. Oil and Natural Gas Corp. Ltd. is equally keen, it appears.The official also added that Reliance Industries Limited (BSE:500325) had earlier expressed interest, but through an informal communication. “They are yet to write to us officially,” he added.