GAIL acquires 49% stake in Leafiniti Bioenergy to expand CBG footprint

New Delhi: State-run gas utility GAIL (India) Limited has acquired a 49 percent equity stake in Leafiniti Bioenergy Private Limited (LBPL) for approximately Rs 13.54 crore, as part of its strategy to scale up its presence in the compressed bio gas (CBG) segment.

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The acquisition, completed on March 18, involves subscription to 1,35,43,215 equity shares of face value Rs 10 each through cash consideration.

LBPL operates a press mud-based CBG plant with a production capacity of 10.2 tonnes per day (TPD) at Bagalkot district in Karnataka. The company reported a turnover of Rs 28.42 crore in FY 2024–25, registering significant growth from Rs 10.10 crore in FY 2023–24 and Rs 9.29 crore in FY 2022–23.

GAIL said the investment will enable it to partner in existing operations and facilitate the development of new CBG projects through LBPL, aligning with the government’s push towards cleaner fuels and circular economy initiatives.

The Ministry of Petroleum and Natural Gas (MoPNG), along with concurrence from the Department of Investment and Public Asset Management (DIPAM), had approved the proposal for equity participation earlier this year.

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The company clarified that the transaction does not fall under related party transactions and has been carried out on an arm’s length basis.

With this move, GAIL continues to strengthen its portfolio in the biofuels space, complementing its core natural gas business and supporting India’s energy transition goals.

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