Sabarmati Gas, a company promoted by Gujarat State Petroleum Corporation Limited and Bharat Petroleum Corporation Limited, is planning to raise Rs 140 crore by offering equity stake to strategic partners at a premium.

According to the sources, Investment banker SBI Caps has been given the task of searching for a strategic partner to take a 50% stake in Gujarat-based gas retailer Sabarmati Gas.

Sabarmati Gas Limited (SGL), a Joint Venture Company between BPCL and GSPCL (Gujarat State Petroleum Corp. Ltd) was incorporated on 6th June 2006, with an authorized capital of Rs 1000 million. The company was setup for implementing the City Gas Distribution Project for supply of CNG to the household and automobile sector in the city of Gandhinagar, Mehsana & Sabarkantha Districts.

In December 2007, SBI Capital along with Oriental Bank of Commerce, Bank of Baroda, Punjab National Bank and State Bank of Travancore had arranged a term loan of Rs 270 crore.