CBM Explorer GEECL Shelves India Listing Plans

Coal bed methane explorer GEECL has decided to drop plans for India listing after ONGC called off stake sale in its CBM block to the London listed company, according to DNA newspaper.

The LSE listed company has decided to call off its plan for domestic listing nine months after getting its draft prospectus approved by the market regulator Sebi in March.

"The management has taken a decisive action to shelve the Indian IPO process," Prashant Modi, chief executive officer of GEECL told LSE investors, according to DNA.

The company has challenged the decision of oil exploration major ONGC in October to call off sale to Great Eastern of 25% participating interest in Ranigunj North, a CBM block lying next to Great Eastern's own operating field.

ONGC undertook a competitive bidding process in January 2013 to divest 25% of its stake in Ranigunj North having a gas in place reserve of 1.5 trillion cubic feet.

According to DNA, GEECL's bid was accepted in May that year and following that ONGC was supposed to sign farm-in and joint operatorship agreements with ONGC. ONGC's rejection of the deal is the second set back for GEECL.