Mahanagar Gas (MGL) shares rallied 7% to hit a 52-week high of Rs 969.60 in Monday’s intraday trade. Afterwards, the company contracted settlement to acquire a 100% stake in City Gas Distributor (CGD) Unison Enviro (UEPL) for Rs 531 crore. Shares of state-owned CGD firms surpassed the previous high of Rs 931.45 on February 16, 2023.
The company has retained a Share Purchase Agreement (SPA) with Unison Enviro Private Limited (UEPL) and existing shareholders of UEPL (Ashoka Buildcon Limited and an investment fund accomplished by Morgan Stanley India Infrastructure) to obtain 100% stake in UEPL.
PNGRB has sanctioned UEPL to contrivance the CGD network in the Geographical Areas (GAs) of Ratnagiri, Latur & Osmanabad in Maharashtra and Chitradurga & Devengere in Karnataka.
UEPL’s equity acquisition is subject to the Petroleum and Natural Gas Regulatory Board (PNGRB) accreditation. The objectives of the acquisition were to arrive in new geographical areas to chase inorganic growth opportunities.
“This acquisition will empower MGL to enlarge to newer geographical areas in Maharashtra (Ratnagiri, Latur & Osmanabad) and Karnataka (Chitradurga & Davanagere), thereby providing new opportunities for long-term growth. The transaction is of calculated importance to MGL, and the protracted footprint would help the corporation to gauge its future business development activities across a superior network and customer base,” MGL said.
MGL has provided Natural Gas through Compressed Natural Gas (CNG) to vehicles and Piped Natural Gas (PNG) to national, commercial, and industrial customers in Mumbai, Navi Mumbai, Thane, counting contiguous areas, and Raigad district.