BG Asia Pacific Holdings, a wholly owned subsidiary of Shell India has sold 10 percent stake in the city gas distribution business of Mahanagar Gas (MGL) for a consideration Rs 770 crore.
The company sold 9.98 million shares through block deals at Rs 780 each.
In 2016, Shell took over BG Group and, subsequently, acquired its assets worldwide. Shell India acquired 34 percent stake in Mahanagar Gas through BG Asia Pacific when it was listed on 1 July 2016.
The company offloaded 24 percent of its shareholding in two tranches, 8.5 percent in April 2018 and 14 percent in August 2018, in the open market through bulk deals.
With this the BG Asia Pacific Holdings stake in the Mahanagar Gas stood at 10 percent. With the latest sale of stake, the company has now exited the city gas business in India.
Guidelines issued by Securities and Exchange Board of India (Sebi) stipulate minimum promoters’ contribution shall be locked in for three years from the date of allotment in a public issue.
With the lock-in period coming to an ending, Shell India decided to sell its stake and focus on other businesses in India.
Mahanagar Gas sells CNG to over 700,000 retail outlets and piped natural gas to over 1.17 million households. It runs over 240 CNG retail outlets. It plans to add 20 CNG stations each over the next two years.