Mahanagar Gas falls 7% after huge block deals

The stock slipped 7.4% to Rs 836 on the NSE in early morning trade after a nearly 26% or 25 million equity shares of the company changed hands on the NSE and BSE.

Shares of Mahanagar Gas Limited (MGL) have slipped 7.4% to Rs 836 per share on the National Stock Exchange (NSE) in early trade after a nearly 26% or 25 million equity shares of the company changed hands on the counter.

Till 09:30 am; a combined 25.31 million equity shares representing 25.6% of total equity of MGL changed hands on the NSE and BSE, the exchanges data show.

The name of buyers and sellers were not ascertained immediately.

MGL, which was listed in July 2016, is a joint venture between GAIL and BG Asia Pacific Holdings Pte Limited, which hold 32.5%. BG Asia had reduced its stake in the company to 24% from 32.5% in April 2018.

On April 11, 2018, BG Asia Pacific Holding, the promoter of Mumbai-based city gas distribution MGL had sold 8.5% or 8.39 million equity shares of the company worth of Rs 7.6 billion.

According to media reports, BG Asia Pacific Holding is likely to sell up to 14% stake in MGL through block deal on Thursday. The floor price for the sale has been set at Rs 851 per share, a 5.7% discount to Tuesday’s closing price.