Mahanagar Gas (MGL) jumped 7.60% to Rs 847.2 on reports Netherlands-based Royal Dutch Shell Plc, will sell its 10% stake for over Rs 700 crore held in the city gas distributor.
Meanwhile, the S&P BSE Sensex was down -62 points or 0.17% to 37340.56.
On the BSE, 4 lakh shares were traded in the counter so far compared with average daily volumes of 59,000 shares in the past two weeks. The stock hit a high of Rs 878.35 and a low of Rs 834 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 holds its stake in Mahanagar Gas (MGL) through its wholly owned subsidiary BG Asia Pacific Holdings. As on 30 June 2019, Shell's subsidiary held 98.77 lakh shares or 10% stake in MGL.
Shell has exercised its option to exit the city gas distribution business 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 has underperformed the market in past one year, falling 14.67% as against Sensex's 2.29% fall.
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 has the distinction of pioneering natural gas distribution network in Mumbai and its adjoining areas.
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