GAIL (India) Ltd to Acquire 49% Stake in Leafiniti Bioenergy Private Limited

GAIL (India) Ltd has entered into a Share Subscription cum Shareholders Agreement with M/s TruAlt Bioenergy Limited (TBL) and Leafiniti Bioenergy Private Limited (LBPL) for equity participation in LBPL. The agreement is subject to satisfactory completion of Condition Precedents and DIPAM approval. GAIL will acquire 49% stake in LBPL, which is currently a wholly owned subsidiary of TBL. The agreement also includes setting up of new Compressed Bio Gas (CBG) projects through LBPL. The LBPL Board will comprise of 4 Directors, out of which 2 Directors each will be nominated by GAIL and TBL. The first Chairman of the Board will be nominated by GAIL. GAIL will have the first right to participate in fresh issuance of shares in proportion to its shareholding. GAIL also has affirmative voting rights with respect to any change in the share capital structure of LBPL. The shares will be issued to GAIL at the time of infusion of equity in LBPL. The agreement also includes a lock-in period of 5 years from the Closing Date or 3 years from the commissioning of the 6th CBG project, whichever is earlier.