Confidence Petroleum India Limited ("Confidence", NSE code: "CONFIPET", BSE code: "526829") & BW LPG Limited ("BW LPG", OSE code: "BWLPG.OL") have announced the signing of definitive Agreements, in respect of an investment in Confidence by BW LPG & a Joint Venture (JV) with Confidence.
BW LPG will invest USD 30 million in Confidence through a preferential allotment of Equity shares. These shares will constitute [8.50%] of the issued and paid-up share capital of Confidence on a fully diluted basis, and BW LPG has the option to increase its shareholding. The investment will support Confidence as it expands its capacity significantly in LPG downstream assets. Currently Confidence Petroleum India Limited ("CPIL" or the "Company") is a fully integrated LPG and CNG Business player with end-to-end Infrastructure involved in various aspect of LPG business, including direct import of LPG, manufacturing LPG cylinders, LPG bottling, LPG retail through Auto LPG dispensing Stations and Packaged LPG and also in CNG retailing and CNG cylinder Manufacturing.
BW LPG and Confidence have agreed to establish a 50/50 JV named "BW Confidence Enterprise Private Limited" in India. The objective is to develop LPG import infrastructure and optimize LPG seaborne imports into India. The JV has committed to a firm project involving the development and operation of a new LPG onshore import terminal in the Jawaharlal Nehru Port Trust (JNPA) in Mumbai. The JV will be based in Mumbai and has its own local organizational setup. It will collaborate with BW Product Services and BW LPG India to source LPG from the international market to meet Confidence's growing import needs.
Says Mr Niels Rigault, Executive Vice President Commercial and Chairman of the Board of BW LPG India, "Confidence has a big presence in the domestic LPG industry, and BW LPG has a strong global shipping and trading presence. Confidence's local strength combined with BW LPG's international presence means we have a perfect match to accelerate both parties' growth trajectory."
Says Shri Nithin Khara, Chairman of Confidence Group, "We are pleased to announce this strategic joint venture with BW LPG and investment in Confidence Petroleum. This collaboration marks a significant milestone for Confidence Petroleum as we strengthen our position in India's LPG market. We look forward to a successful and mutually beneficial partnership that will drive value for our stakeholders and contribute towards our shared success."
The two partners reaffirm their commitment to support the Government of India's Pradhan Mantri Ujjwala Yojana (translated as Prime Minister's Lighting Scheme) and ensure the supply of LPG throughout India. LPG is a Green fuel which can alleviate environmental and health concerns, and support India's transition towards a lower-carbon, gas-based economy.
Mr. Varun Parakh (Managing Director of Kero Capital Private Limited) acted as an investment banker for Confidence Petroleum India Limited.
The preferential allotment by Confidence to BW LPG is subject to the approval of Confidence shareholders and customary closing conditions.
Shares of Confidence Petroleum India Limited was last trading in BSE at Rs. 101.59 as compared to the previous close of Rs. 99.77. The total number of shares traded during the day was 760686 in over 4035 trades.
The stock hit an intraday high of Rs. 104.20 and intraday low of 98.55. The net turnover during the day was Rs. 77128492.00.