Mahanagar Gas Ltd (MGL) share price rallied 12 percent to Rs 882.10 in the National Stock Exchange (NSE) in early trade on Tuesday (August 20) after BG Asia Pacific Holdings (BGAPH), exited from the gas distribution company on Tuesday by selling 10 percent stake in the company via block deals.
The exchange data shows that British Gas sold 98 lakh shares in the natural gas distribution company through block deals. The block deal was done at a price of Rs 780 per share on NSE.
At 12:25 pm, Mahanagar Gas share was trading at 849.70 up 7.96 per cent on the NSE. They are trading above its 50-day moving average of Rs 796 but below its 200 day moving average of Rs 890.26 on BSE.
In April this year, Shell had reduced its shareholding in Mahanagar Gas from 32.5 percent to 24 percent. In its media statement, Shell said, "This is part of Shell’s ongoing portfolio optimisation to transform Shell into a simpler company, delivering stronger returns."
There was an indirect change in holding of one promoter of the company, when in February 2016, Royal Dutch Shell acquired BG (British Gas) worldwide. Mahanagar Gas reported 32.66 per cent year-on-year growth in June 2019 quarter net profit at Rs 170.24 crore.
The company has been jointly owned by GAIL (India) Limited, Government of Maharashtra and BG Asia Pacific Holdings Pte. Limited. It is involved in the distribution of compressed natural gas (CNG) and piped natural gas (PNG) in Mumbai and its adjoining areas and in the Raigad district in Maharashtra. It also supplies CNG for vehicles, including rickshaws, taxis, buses, trucks and cars in Mumbai, Thane, Mira-Bhayander, Navi Mumbai.
Mahanagar Gas was founded on May 8, 1995 and sells CNG to over 6 lakh vehicles and PNG to over 1 million households. It runs 223 CNG retail outlets.
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