Mahanagar Gas Acquires 44% Stake in IBC India

Mahanagar Gas Limited (MGL) has completed its investment in International Battery Company India Private Limited (IBC India). The acquisition, finalized on February 3, 2025, involved the purchase of 43,71,065 equity shares, giving MGL a 44% stake in IBC India’s paid-up equity share capital. The total consideration for the transaction was ₹35.35 crore.

Nature of the Transaction

MGL’s acquisition does not fall under related-party transactions. The company has confirmed that its promoter group does not have any existing interest in IBC India. The transaction was executed at arm’s length, and there were no legal or regulatory approvals necessary for the completion of the transaction.

The investment was finalised as per SEBI’s Listing Regulations and was disclosed to the stock exchanges, including BSE and NSE.

Financial Terms

The acquisition was completed through a cash transaction. MGL’s purchase of a 44% stake in IBC India was at a price of ₹10 per share, with the total deal amounting to ₹35.35 crore. IBC India has an authorised share capital of ₹10 crore, divided into 1 crore equity shares of ₹10 each.

Background of IBC India

IBC India was incorporated on May 22, 2023, and operates in the battery cell manufacturing and distribution sector. The company’s business includes the production, marketing, sale, and export of battery cells. As of March 31, 2024, IBC India had a net worth of ₹82.78 lakh. Its turnover for FY24 stood at ₹8.06 lakh.

Why Does This Matter?

The acquisition aligns with MGL’s plan to expand beyond its core business. Alongside International Battery Company, Inc. (IBC US), MGL intends to explore the battery cell market through IBC India. This includes manufacturing, marketing, and distribution of battery cells in India.

Mahanagar Gas Ltd shares are trading at ₹1,326.10, up ₹7.30 (0.55%) today as of February 4, 11:33 AM, gaining 2.24% over the past five days but declining 26.05% in the last six months.

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