Singapore-based BW LPG will invest $30 million in Confidence Petroleum India through preferential allotment of shares, and form a joint venture to develop LPG import infrastructure, the companies said on Thursday.
The Indian liquefied petroleum gas (LPG) cylinder maker will issue up to 28.2 million shares to BW VLGC Pte, a unit of the Norway-listed LPG shipper, at 88.6 rupees apiece, an exchange filing showed on Thursday.
Confidence Petroleum will also enter into a joint venture agreement with BW VLGC to develop LPG-importing infrastructure. Both companies will have equal ownership in the newly formed joint venture company, BW Confidence Enterprise Pvt.
The joint venture will also enter into a further agreement with liquified storage tank provider Ganesh Benzoplast for the development and operation of a new LPG onshore terminal at Jawaharlal Nehru Port Association (JNPA) port in Mumbai.
Shares of Confidence Petroleum rose 2% after the announcement, while Ganesh Benzoplast surged 3.6% in early trade.
