GP Petroleums approves Rs 44.27 crore Pipavav terminal stake purchase to strengthen storage access

GP Petroleums has approved a strategic equity investment of about Rs 44.27 crore in Incubit Pipavav Terminal Private Ltd, or IPTPL, a bulk-liquid storage terminal operator at Pipavav Port in Gujarat. The transaction could give the lubricant and petroleum-products company access to tank storage, rental space and terminal infrastructure that may support its supply-chain and trading operations.

The company plans to acquire shares from certain existing IPTPL shareholders at Rs 10.80 per share, subject to any change in the terminal operator’s valuation. The purchases may be completed in multiple tranches over a period of one year and will be funded through GP Petroleums’ internal reserves.

The final number of shares to be acquired and GP Petroleums’ eventual ownership percentage have not been disclosed. The deal remains subject to conditions under the share purchase agreement, closing requirements and statutory, regulatory, corporate and third-party approvals.

IPTPL, formerly Gulf Petrochem (India) Private Ltd, handles bulk petroleum and other liquid products and operates a bulk-liquid storage terminal at Pipavav Port. Its turnover rose to Rs 38.48 crore in FY2025-26 from Rs 25.32 crore in FY2024-25, although it was slightly above the Rs 37.20 crore reported in FY2023-24.

The proposed investment is sizeable in relation to GP Petroleums’ own operations. At about Rs 44.27 crore, the outlay is equivalent to nearly 6.9 per cent of the company’s FY2025-26 consolidated revenue of Rs 642.61 crore. It is also about 14.5 per cent of the company’s market capitalisation of Rs 304.33 crore, based on supplied market data.

For GP Petroleums, which manufactures and markets lubricants, greases and rubber process oils while also trading base oil, fuel oil and bitumen, access to port-linked liquid storage could have strategic relevance. Base oil and petroleum-linked inputs are important to its business, where inventory planning, availability of raw materials and Logistics costs can influence operating performance.

The acquisition also aligns with the company’s earlier focus on expanding its industrial lubricants, speciality products and IPOL brand reach. In FY2025-26, its manufacturing segment reported revenue of Rs 535.68 crore, up from Rs 503.56 crore a year earlier, while trading revenue was broadly flat at Rs 106.93 crore. The trading segment’s result, however, declined to Rs 1.44 crore from Rs 3.10 crore, underlining the importance of efficient sourcing and logistics in petroleum-product trading.

GP Petroleums said the transaction is not a related-party transaction under the Companies Act. However, the proposed share purchase from Anita Goyal is treated as a related-party transaction under SEBI listing regulations because she belongs to the company’s promoter group. The company said the purchase would be undertaken on an arm’s-length basis and is supported by an independent valuation report.

Separately, the board accepted Arjun Verma’s resignation as chief financial officer with effect from October 15, 2026. Verma will remain whole-time director and executive director, as well as key managerial personnel. He cited personal reasons for stepping down as CFO and stated that there was no other material reason for his resignation.

The board has appointed Shirish Suvagia as chief financial officer and key managerial personnel from the same date, following recommendations from its audit committee and nomination and remuneration committee.

As of 2:12 pm on October 13, 2026, GP Petroleums shares were trading at Rs 58.85, down 1.41 per cent from the previous close. The stock has gained 48.30 per cent over the past year, compared with a 6.29 per cent decline in the BSE 500 over the same period. It remained about 16.4 per cent below its 52-week high of Rs 70.36.

Disclaimer: The article is for informational purposes only and not investment advice.