Mahanagar Gas share price rises over 11% after promoter BG Asia Pacific sells entire stake

Mahanagar Gas Ltd (MGL) share price zoomed in early trade today after BG Asia Pacific Holding, the promoter of Mumbai-based Mahanagar Gas, exited from the gas distribution company by selling 10% stake for Rs 724 crore through a block deal today.

The block deal was done at a price of Rs 780 per share on NSE. Mahanagar Gas share price rose up to 11.56% or 91 points to Rs 878.35 compared to the previous close of Rs 787.35 in early trade.

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Mahanagar Gas share opened with a gain of 5.92% at Rs 834 level on BSE.

Mahanagar Gas share has lost 7.04% during the last one year and fallen 5.39% since the beginning of this year. 18 of 23 brokerages rate the stock "buy" or 'outperform', three "hold" and two "sell", according to analysts' recommendations tracked by Reuters.

Mahanagar Gas share is trading above its 50 day moving average of Rs 796 but below its 200 day moving average of Rs 890.26 on BSE.

The company is engaged in the distribution of compressed natural gas (CNG) and piped natural gas (PNG) in Mumbai and its adjoining areas and in the Raigad district in Maharashtra. It also supplies CNG for vehicles, including rickshaws, taxis and cars in Mumbai, Thane, Mira-Bhayander, Navi Mumbai.

Mahanagar Gas was founded in 1995 and sells CNG to over 6 lakh vehicles and PNG to over 1 million households. It runs more than 220 CNG retail outlets.

 Edited by Aseem Thapliyal