A unit of Royal Dutch Shell has sold 8.5 per cent stake in Mahanagar Gas Ltd, the firm which retails CNG to automobiles and piped cooking gas to households in Mumbai and adjoining areas.
BG Asia Pacific Holdings (BGAPH), a wholly owned subsidiary of Shell, reduced its shareholding in MGL from 32.5 per cent to 24 per cent, MGL said in a regulatory filing.
The sale of equity shares was done in the open market by way of a bulk deal on April 11, it said.
State-owned gas utility GAIL India Ltd holds 32.5 per cent stake in MGL, while the government of Maharashtra has 10 per cent. The remaining 25 per cent is with public shareholders.
“This is part of Shells ongoing portfolio optimisation to transform Shell into a simpler company, delivering stronger returns,” Shell said in its media statement.
“Our investment in the Hazira LNG receiving terminal in Gujarat and the recent creation of Shell Energy India, our gas marketing and trading business, shows our commitment to grow in India and to increase gas penetration in the country,” it said.
In a separate statement sent to the exchanges, MGL said the share sale was the prerogative of promoters and its business will continue as usual.
“MGL is abreast with the latest technologies as applicable to its areas of operations and is a self-reliant, financially sound company,” it said.
“MGL is an independent board managed company with proven track record in city gas distribution (CGD) business. Day to day decisions are taken by Apex Executive Committee. Except one whole time Director each from GAIL & BG (Shell), all other members of Apex Executive Committee are company executives with long experience in CGD industry.”