Mahanagar Gas slips after Shell's exit

Mahanagar Gas (MGL) fell 1.06% to Rs 839.45 at 11:05 IST on BSE after Netherlands-based Royal Dutch Shell Plc, sold its entire 10% stake in the city gas distributor.

Meanwhile, the S&P BSE Sensex was down 14 points or 0.04% to 37,314.42.

On the BSE, 38,000 shares were traded in the counter so far compared with average daily volumes of 1.26 lakh shares in the past two weeks. The stock hit a high of Rs 850 and a low of Rs 834.3 so far during the day.

The stock hit a 52-week high of Rs 1057.2 on 29 Mar 2019. The stock hit a 52-week low of Rs 754.7 on 22 Jul 2019.

Shell announced that its wholly owned subsidiary, BG Asia Pacific Holdings, has sold all its remaining shareholding in the publicly listed Mahanagar Gas (MGL). This is part of Shell's ongoing portfolio optimization to transform Shell into a simpler company, delivering stronger returns.

BG Asia Pacific Holdings sold 98.77 lakh shares, or 10% stake, in MGL at Rs 780 each on the NSE yesterday, 20 August 2019.

Goldman Sachs India purchased 6.73 lakh shares, or 0.68% stake, in MGL. HDFC Mutual Fund purchased 5.78 lakh shares, or 0.59% stake. SBI Life Insurance Company acquired 6.20 lakh shares, or 0.63% stake. Societe Generale bought 12.82 lakh shares, or 1.30% equity. All the trasactions were struck at Rs 780 per share.

Media reports suggested yesterday that Shell exercised its option to exit MGL as the lock-in period for minimum promoter holding after listing of a company expired last month. MGL was listed in June 2016 and the three year lock-in period, as per market regulator's listing norms expired on 1 July 2019.

MGL reported 32.7% rise in the net profit to Rs 170.24 crore on a 22.3% rise in the 757.49 crore in Q1 June 2019 over Q1 June 2018.

MGL is one of the largest city gas distribution in India with sole authorisation to distribute compressed natural gas (CNG) and piped natural gas (PNG) in Mumbai, its adjoining areas and the Raigad district in the state of Maharashtra, India. Shell has sold all its shareholding in MGL and has now exited the company.

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