Maharashtra Natural Gas (MNGL), a joint venture involving Bharat Petroleum Corporation Ltd (BPCL), GAIL, and Indraprastha Gas Ltd (IGL), is gearing up to go public with an Initial Public Offering (IPO) exceeding ₹1,000 crore, as reported in a company filing by BPCL on January 6, which indicates that the board has given its preliminary approval for the offering.
“We would however like to mention that there has been a news report that MNGL, joint venture of BPCL, GAIL, 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.
As per news reports, BPCL and GAIL each possess a 22.5% stake in MNGL, whereas IGL commands a 50% stake, and the Maharashtra Industrial Development Corporation (MIDC) retains a 5% interest in the joint venture.
MNGL is a company that distributes natural gas, focusing on the supply of Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) in the state of Maharashtra. The company primarily operates in Pune, Pimpri-Chinchwad, and surrounding areas in Maharashtra, with plans to extend its reach to nearby districts such as Nashik, Sindhudurg, Ratnagiri, and Satara. MNGL’s goal is to broaden its presence by obtaining new licenses for city gas distribution in Maharashtra and potentially in other states as well.
On Tuesday's session, BPCL share price rose over 2%, the stock opened at ₹287.60 apiece on the BSE and touched an intraday high of ₹290.55, and an intraday low of ₹285.70 per share.
“BPCL share price are 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.
Shares of GAIL and IGL were trading in green on Tuesday's session. Rajesh Bhosale highlighted that GAIL share prices have seen strong start for the day and if these gains hold then we may see a bullish candle stick pattern known as Insider bar on the daily chart. As long prices hold 182 levels one can keep an approach of bounce back whereas below 182 the downtrend will resume. on flip side 198 is immediate resistance.
Further, Bhosale added that IGL share prices are trading in a range of 410 - 435 and next directional move would be seen only on a range breakout from the mentioned levels.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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