CALCULATE YOUR SIP RETURNS

BPCL Board Approves MNGL IPO Worth Over ₹1,000 Crore

Updated on: Jan 7, 2025, 2:29 PM IST
BPCL grants in-principle approval for MNGL IPO worth over ₹1,000 crore, subject to regulatory and other clearances, as announced on January 6, 2025.
BPCL Board Approves MNGL IPO Worth Over ₹1,000 Crore
ShareShare on 1Share on 2Share on 3Share on 4Share on 5

Bharat Petroleum Corporation Ltd (BPCL) announced on January 6 that its board has given in-principle approval for an Initial Public Offering (IPO) of Maharashtra Natural Gas Ltd (MNGL). The proposed IPO, valued at over ₹1,000 crore, is subject to regulatory and other necessary clearances.

MNGL Ownership Structure

MNGL is a joint venture where Indraprastha Gas Ltd (IGL) holds a 50% stake. BPCL and GAIL each own 22.5%, while the Maharashtra Industrial Development Corporation (MIDC) retains the remaining 5%. The IPO is expected to include both a fresh issue and an offer for sale (OFS), with IGL reportedly planning to partially divest its stake.

Operations and Expansion Plans

MNGL focuses on distributing natural gas, including Compressed Natural Gas (CNG) and Piped Natural Gas (PNG). It primarily operates in Pune, Pimpri-Chinchwad, and adjoining regions like Hinjewadi, Chakan, and Talegaon in Maharashtra. Additionally, its operations extend to districts in Karnataka, Telangana, and other parts of Maharashtra, including Nashik, Sindhudurg, and Buldana. MNGL plans to further expand by obtaining new city gas distribution licenses.

Financial Performance in FY24

MNGL reported financial growth in FY24, achieving a revenue of ₹3,000 crore. Its EBITDA  grew by 41% year-on-year to ₹961.53 crore, while net profit increased by 45% to ₹610 crore. The company invested ₹562.79 crore in capital expenditure during the fiscal year.

MNGL operates 246 CNG stations and has provided 8.58 lakh domestic PNG connections. The company’s presence in the city gas distribution sector aligns with the increasing demand for cleaner energy sources, especially in urban areas.

Impact on BPCL Shares

Following the announcement of the IPO approval, BPCL’s stock rose over 2%, reaching an intraday high of ₹289.40 at 9:25 AM. BPCL shares are currently trading at ₹281.90, down by 1.04% at 12:05 PM,  marking a 5.78% decline over the past six months but reflecting a gain of 24.04% over the past year. The proposal’s progress remains contingent on regulatory and other approvals.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing

Published on: Jan 7, 2025, 2:29 PM IST

We're Live on WhatsApp! Join our channel for market insights & updates

Open Free Demat Account!

Join our 2.5 Cr+ happy customers

+91
Enjoy Zero Brokerage on Equity Delivery
4.4 Cr+DOWNLOADS
Enjoy ₹0 Account Opening Charges

Get the link to download the App

Get it on Google PlayDownload on the App Store
Open Free Demat Account!
Join our 2.5 Cr+ happy customers