BG Asia Pacific Holdings Pte Ltd, a wholly owned subsidiary of Shell India, today said it has sold 14 per cent stake in CNG retailing firm Mahanagar Gas Ltd in the open market, reducing its holding to 10 per cent.
This is the second time in five months that BG Asia Pacific Holdings Pte Ltd (BGAPH) has sold stake in Mahanagar Gas Ltd (MGL). It had in April pared shareholding in MGL to 24 per cent from 32.50 per cent.
In a regulatory filing to the stock exchanges, BGAPH said 1.38 crore shares, carrying voting rights of 14 per cent, were sold today.
Without giving transaction value, it said the "sale of equity shares (was executed) in the open market by way of a bulk deal".
As per bulk deal data available with the NSE, the shares were sold at an average price of Rs 852 apiece, valuing the transaction at Rs 1,176 crore.
BlackRock Emerging Frontiers Master Fund, L&T Emerging Business Fund and Schroder International Selection Fund were among the buyers.
Following the sale of shares, MGL plunged by 6.87 per cent to close at Rs 840.25 on the NSE. During the trading session, the scrip had touched the day's low of Rs 832.
MGL, which was listed in July 2016, is a joint venture between state-owned gas utility GAIL India Ltd and BG Asia Pacific Holdings Pte Ltd, with each holding 32.5 per cent. BGAPH's stake in the company has since been reduced -- first to 24 per cent in April and now to 10 per cent.
While Shell spokesperson could not be reached for comments immediately, the company had in April stated that the share sale is a part of the ongoing portfolio optimisation to transform into a simpler company, delivering stronger returns.
"We believe in the key role that gas will play in India and continue to seek opportunities in that arena. Our investment in the Hazira LNG receiving terminal in Gujarat and the recent creation of Shell Energy India, our gas marketing and trading business, show our commitment to grow in India and to increase gas penetration in the country," it had said.
MGL retails compressed natural gas (CNG) to automobiles and piped natural gas to households and industries in and around Mumbai.
Founded in 1995, it sells CNG to over 6 lakh vehicles and piped natural gas to over 10 lakh households. It operates 203 CNG stations and has a pipeline network of 4,838 kilometres.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)