Indraprastha Gas Ltd (IGL) has agreed to invest ₹190 crore in Maharashtra Natural Gas Ltd (MNGL) by acquiring five crore shares from institutional investors. The acquisition will be in a manner wherein post the transaction, IGL’s shareholding does not exceed 50 per cent in MNGL. The shares will be acquired at ₹38 a share.
MNGL is in the business of city gas distribution in Pune. The company is a joint venture of GAIL (India) and BPCL with both owning 22.5 per cent each in the company. The other shareholders are the Government of Maharashtra which owns 5 per cent; IDFC which owns 20 per cent; IL&FS which owns 20 per cent and Axis Bank which owns the remaining 10 per cent.
“The purchase of shares is subject to finalisation and execution of definitive agreements (share purchase agreements) in this regard,” IGL said in a statement to the BSE.
Profit up 30% in Q1Meanwhile, IGL reported a 30 per cent increase in its net profit to ₹114.03 crore for the first quarter of fiscal 2014-15 against ₹87.58 crore on the back of a lower depreciation expense. However, the company’s net sales fell 3.5 per cent to ₹868.73 crore from ₹900.66 crore in the same quarter last year.