GAIL India emerges as top bidder for debt-ridden JBF Petrochemicals

5 Sep 2022 , 12:19 PM

GAIL India has emerged as the highest bidder for the acquisition of debt-ridden JBF Petrochemicals, with an Rs1,800-crore resolution plan that is the finest of the three proposals submitted for the insolvent business at the expiry of the August 30 bid deadline, stated sources.

GAIL has been concluded as the winner amongst an ONGC-Indian Oil consortium and Kolkata-based MCPI.

Earlier, seven giants submitted expression of interests for the acquisition of JBF Petrochemicals. This includes Reliance Industries, a consortium of HPCL-Mittal Energy, and BC Jindal Group’s Jindal Poly Films.

However, only 3 companies made it to the final bidding process namely, ONGC-Indian Oil consortium, Kolkata-based MCPI, and GAIL India.

JBF Petrochemicals owes $463 million (about Rs3,658 crore) in principle, the vast bulk of which is secured by external commercial borrowings and foreign currency term loans.

IDBI Bank is its largest lender, with loans totaling $252 million. Indian Overseas Bank, Exim Bank, Union Bank of India, and Bank of Baroda are among the company’s other lenders. Its entire outstanding debt is estimated to be over Rs5,000 crore.

At around 12.27 PM, GAIL (India) was trading at Rs137.10 up by 1.26% from its previous closing of Rs135.40 on the BSE.

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