Confidence Petroleum Acquires Majority Stake in Punjab Petroleum Corporation

On July 02, 2024, Confidence Petroleum India Limited announced that it had acquired 99.99% of Punjab Petroleum Corporation Limited’s (PPCL) equity share capital. This acquisition involves 22,50,000 equity shares with a face value of ₹10 each.

As a result, from July 1, 2024, Punjab Petroleum Corporation Limited has become a subsidiary of Confidence Petroleum India Limited.

This acquisition is not a related party transaction, and neither the promoter nor the promoter group has any interest in PPCL, ensuring that the transaction is conducted at arm’s length. Both Confidence Petroleum and PPCL operate in the Gas and Petroleum Industry, focusing on LPG bottling and cylinder manufacturing.

Acquisition Details

Confidence Petroleum India Ltd. completed the acquisition of Punjab Petroleum Corporation Ltd. (PPCL) on July 1, 2024. The acquisition was made through a cash consideration, with shares purchased at ₹19.50 each. So, Confidence Petroleum has acquired 99.99% of PPCL’s shares.

Recent Joint Venture

Recently, Confidence Petroleum India formed a strategic alliance with Norway-listed BW LPG, a leading LPG shipping and trading company. As part of the collaboration, BW LPG has made significant investments in Confidence Petroleum and established a joint venture named “BW Confidence Enterprise” (BW Confidence). This joint venture invested in onshore LPG import infrastructure in India, with a project in Mumbai to develop one of the country’s largest cryogenic LPG storage facilities to support LPG supply.

About Punjab Petroleum Corporation Limited

Punjab Petroleum Corporation Ltd (PPCL), incorporated in October 1994, has an LPG bottling unit in Sahibzada Ajitsingh Nagar, Punjab.

About Confidence Petroleum India Ltd

Confidence Petroleum India Ltd manufactures LPG cylinders and supplies auto LPG in India. The company has a nationwide bottling plant network and Auto LPG dispensing stations. It also provides packed LPG cylinders and offers LPG bottling services to industrial and commercial customers. Confidence Petroleum is India’s largest private Auto LPG marketing company, with over 248 Auto LPG stations. It is also one of the largest private sellers of packed LPG and one of Asia’s largest manufacturers of LPG cylinders.

On July 3, 2024, the share price of Confidence Petroleum India Ltd opened at ₹81.65, touching the day’s high at ₹83.34, as of 09:47 AM on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.