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

GAIL (India) Ltd and TruAlt Bioenergy Limited (TBL) have entered into a Share Subscription cum Shareholders Agreement with Leafiniti Bioenergy Private Limited (LBPL). GAIL will acquire a 49% stake in LBPL, subject to satisfactory completion of Condition Precedents and DIPAM approval. The agreement also includes setting up of new Compressed Bio Gas (CBG) projects through LBPL. The LBPL Board will comprise of 4 Directors, with 2 each nominated by GAIL and TBL. The Chairman of the Board will be nominated by GAIL/TBL by rotation in every three years. The Chief Executive Officer (CEO) and Chief Financial Officer (CFO) will be nominees of LBPL and GAIL respectively. GAIL has the first right to participate in fresh issuance of shares and has affirmative voting rights with respect to any change in the share capital structure of LBPL. The transaction is not a related party transaction. 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.