Maharashtra Natural Gas (MNGL), a joint venture between BPCL, GAIL and IGL is preparing to list through an Initial Public Offering (IPO) of over Rs 1,000 crore, with the board of BPCL having given its in-principle nod for the issue, a company filing by the oil marketing company said on January 6.
BPCL and GAIL hold 22.5% stake in MNGL, while IGL holds 50% stake, and the Maharashtra Industrial Development Corporation (MIDC) has a 5% in the joint venture.
"...Maharashtra Natural Gas Limited (MNGL), joint venture of BPCL, GAIL, IGL is preparing to list through an Initial Public Offering (IPO) of over Rs.1000 crore. In this respect, BPCL Board has given in-principle approval for the IPO, subject to regulatory and other approvals," BPCL said in an exchange filing.
Maharashtra Natural Gas (MNGL) is a natural gas distribution company engaged in supplying Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) in Maharashtra. MNGL's operations are centered around Pune, Pimpri-Chinchwad, and the adjoining regions in Maharashtra, with expansion to nearby districts like Nashik, Sindhudurg, Ratnagiri, and Satara.
MNGL aims to expand footprint by acquiring new licenses for city gas distribution in Maharashtra as well as other states. "The future of the CGD industry is promising, fuelled by the growing demand for low-carbon energy sources. MNGL is well-positioned to capitalise on these opportunities, with plans to expand operations and invest in infrastructure to drive sustainable growth," Anilkumar P, chairman has said.
As of FY24, MNGL operates 246 CNG Stations and 8.58 lakh domestic PNG connections. The gas distributor had achieved Rs 3,000 crore in revenue during FY24, growing the EBITDA at 41% on year to Rs 961.53 crore. MNGL's net profit rose by 45% on year to Rs 610 crore in FY24, and the company's capex stands at Rs 562.79 crore.
The city gas distribution business is expected to meet the energy needs of urban areas in a more sustainable manner going forward, with the demand for lesser carbon intensive fuel source likely to rise. This shift towards natural gas as a source of fuel would need investment in infrastructure, pipelines, storage facilities, and distribution networks.
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