Maharashtra Natural Gas (MNGL), a joint venture between BPCL, GAIL, and IGL, plans to raise over ₹1,000 crore through an IPO, according to a company filing by BPCL on January 6. The board has given preliminary approval for the offering.
“We would however like to mention that there has been a news report that MNGL, a joint venture of BPCL, GAIL, and IGL is preparing to list through 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,” said the company in an exchange filing.
According to news reports, BPCL and GAIL each own 22.5% of MNGL, IGL owns 50%, and the Maharashtra Industrial Development Corporation (MIDC) owns the remaining 5%.
MNGL is a natural gas distribution firm that specializes in the supply of Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) in Maharashtra. The company primarily operates in Pune, Pimpri-Chinchwad, and adjoining parts of Maharashtra, with intentions to expand into other districts such as Nashik, Sindhudurg, Ratnagiri, and Satara. MNGL’s goal is to expand its presence by getting new licenses for city gas distribution in Maharashtra and possibly other states as well.
On Tuesday, BPCL’s share price increased by almost 2%. The stock began at ₹287.60 per share on the BSE and reached an intraday high of ₹290.55 and a low of ₹285.70.
“BPCL share price is currently trading at key support around 280 levels, going with the recent broader market weakness the stock has been under pressure, a further slip below 280 could drag prices further 265 whereas 300 is the immediate resistance only beyond which the uptrend would resume,” said Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One.
GAIL and IGL shares were up on Tuesday. Rajesh Bhosale stated that GAIL share prices have had a great start to the day, and if these gains continue, we may witness a bullish candlestick pattern known as an Insider bar on the daily chart. As long as prices remain above 182, a bounce back is possible, but if prices go below 182, the decline resumes. On the flip side, 198 represents immediate resistance.
Furthermore, Bhosale stated that IGL share prices are trading in a range of 410 – 435 and that the next directional move would occur only if the range breaks out from the indicated levels.
