IGL, BPCL, Gail (India) shares rise 2% each on in-principle nod to MNGL IPO

MNGL IPO news: BPCL's Board has given an in-principle approval for MNGL listing

Shares of Bharat Petroleum Corporation (BPCL), Indraprastha Gas (IGL), Gail (India) were in focus on Tuesday, January 7, 2025. BPCL share price, today, rose 2 per cent (Rs 290.5 per share) in the morning trade as the company’s Board gave in-principle approval for the initial public offering (IPO) of Maharashtra Natural Gas Limited (MNGL).

 

Clarifying to the exchanges regarding "significant movement in the company’s stock price", BPCL informed the BSE and the NSE that there was no event / information reported in the mainstream media January 5th and 6th, 2025, including any impending announcement, which could have trigged the material price movement.

 

 

"We would, however, like to mention that there has been a news report that Maharashtra Natural Gas Limited (MNGL), joint venture of BPCL, GAIL, IGL is preparing to list through an Initial Public Offering (IPO) of over Rs 1,000 crore. In this respect, BPCL Board has given in-principle approval for the IPO, subject to regulatory and other approvals," BPCL said.

 

MNGL is engaged in the distribution of compressed natural gas and piped natural gas.

  IGL holds a 50-per cent stake in the JV, while BPCL and Gail (India) hold 22.5-per cent stake each, as per reports. The remaining 5 per cent is with Maharashtra Industrial Development Corporation.

 

Effectively, IGL share price, also, added 2.2 per cent today to hit an intraday high of Rs 433.75 per share. Gail (India) share price today climbed 2.5 per cent to an intraday high of Rs 189.25 per share.

 

By comparison, the BSE Sensex index was up 466 points (0.6 per cent) at 78,431 level at 9:50 AM.

 

About MNGL

MNGL is a city gas distribution company, engaged in laying pipelines, build infrastructure, and operate CGD projects. At present, the company’s core area/region of operation is Pune, Pimpri-Chinchwad, and surrounding areas, with an aim to expand into districts across Maharashtra, Karnataka, and Telangana.

 

Offering CNG for the transportation sector and PNG for domestic, commercial, and industrial use, MNGL strives to be a leading provider of natural gas solutions.

 

At the end of the financial year 2023-24 (FY24), MNGL had 246 CNG stations with 24,05,000 kg per day gas compression capacity. It had 8,58,661 PNG domestic connections with 495 PNG commercial customers and 361 industrial customers, as per its Annual Report.

 

Financially, MNGL’s revenue stood at Rs 3,002 crore at the end of FY24, Ebitda at Rs 962 crore and net profit at Rs 610 crore. It had a dividend yield of 183 per cent.

 

MNGL IPO: Analysts' View

According to reports, global brokerage Citi believes the MNGL IPO may help unlock value for IGL shareholders.

 

It may also help unlock value for Gail (India)’s unlisted CGD investments, it added.

 

Citi, reportedly, has set IGL share price target at Rs 450, with a ‘Buy’ rating.