BPCL Board approves MNGL IPO plans, valued at over ₹1,000 crore

MNGL IPO: Bharat Petroleum Corporation Ltd's (BPCL's) Board has given an in-principle approval for the initial public offering of Maharashtra Natural Gas Limited (MNGL), a joint venture of BPCL, Gail and Indraprastha Gas Limited (IGL). The IPO size will be more than ₹1,000 crore, the company said in an exchange filing.

IGL has a 50% stake, while BPCL and Gail hold a 22.5% stake each in the JV MNGL. The Maharashtra Industrial Development Corporation, or MIDC, also has a 5% stake in the company.

In a regulatory filing, BPCL said, "Maharashtra Natural Gas Limited (MNGL), a joint venture of BPCL, GAIL, IGL is preparing to list through an Initial Public Offering (IPO) of over ₹1,000 crore. In this respect, BPCL Board has given in-principle approval for the IPO, subject to regulatory and other approvals."

MNGL is a city gas distribution firm. It has received approval from the Petroleum and Natural Gas Regulatory Board (PNGRB) to lay, operate, and expand city gas distribution projects in Pune and Pimpri-Chinchwad, including the nearby areas of Hinjewadi, Chakan, and Talegaon.

The company has also been authorised to expand to the Valsad, Dhule, Nashik, Sindhudurg, and Ramanagara districts.

In its FY24 annual report, the company said it achieved its highest-ever revenue of ₹3,001,88 crore, and EBITDA surged 41% to ₹961.53 crore. Profit after tax climbed by 45% to ₹610.12 crore.

"FY 2023-24 has been particularly notable for its impressive physical and infrastructure achievements by MNGL. Your company laid infrastructure to add approximately 1.68 lakh Domestic Piped Natural Gas (DPNG) connections, the highest achievement in a single year, thereby bringing its cumulative total to around 8.50 lakh connections and positioning it as the fourth largest City Gas Distribution (CGD) entity in India in this regard," Anilkumar P, chairman had said.