BPCL Shares Gain on in principle MNGL IPO Approval

7 Jan 2025 , 09:51 AM

Following the state-owned refiner’s in-principle clearance of the initial public offering (IPO) of Maharashtra Natural Gas Ltd (MNGL), a joint venture with GAIL and Indraprastha Gas Ltd (IGL), shares of Bharat Petroleum Corporation (BPCL) surged 2% to a high of Rs 290.55 on the BSE today.

The board has approved the proposal, which is pending regulatory and other approvals, the business stated in response to news of an IPO for Rs 1,000 crore.

At the moment, IGL controls 50% of MNGL, while BPCL and GAIL both share 22.5%. Through the Maharashtra Industrial Development Corporation (MIDC), the Maharashtra government owns the remaining 5% of the company.

Both a new issue and an offer for sale (OFS) will be part of the initial public offering. IGL, the biggest shareholder, is reportedly planning to partially sell its stake through the OFS component.

Pune, Pimpri-Chinchwad, and the neighboring areas are served by MNGL. Additionally, it is spreading into additional Telangana, Karnataka, and Maharashtra areas. The company sells piped natural gas (PNG) for residential, commercial, and industrial use as well as compressed natural gas (CNG) for the transportation industry.

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