Maharashtra Natural Gas Ltd., a joint venture with GAIL and Indraprastha Gas Ltd., has received in-principle approval from Bharat Petroleum Corp. to go public. According to BPCL’s regulatory filing, the proposed IPO is anticipated to garner about Rs 1,000 crore. IGL currently owns 50% of MNGL, with BPCL and GAIL each owning 22.5%.
MNGL is a municipal gas distribution company. The establishment, operation, and expansion of city gas distribution projects in Pune and Pimpri-Chinchwad, as well as the neighboring communities of Hinjewadi, Chakan, and Talegaon, have been approved by the Petroleum and Natural Gas Regulatory Board (PNGRB).
Financial Performance of Maharashtra Natural Gas
MNGL’s financial performance has been outstanding. With a sales of Rs 3,000 crore for FY24, the company’s primary business saw significant development. While net profit increased by an impressive 45% to Rs 610 crore, earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 41% year over year to Rs 961.53 crore.
The company spent Rs 562.79 crore on capital projects during the fiscal year. At the moment, MNGL supplies 8.58 lakh domestic PNG connections and runs 246 CNG stations. MNGL works in the CGD industry, which is expected to grow quickly as the world moves toward greener and more sustainable energy sources. As a low-carbon substitute for conventional fossil fuels, natural gas has become more popular as an energy source, particularly in cities.
About the Company
The Government of Maharashtra, through MIDC and Indraprastha Gas Limited (IGL), has an equity stake in Maharashtra Natural Gas Limited (MNGL), a City Gas Distribution business that is a joint venture between two Maharatna PSUs, GAIL (India) Limited and Bharat Petroleum Corporation Limited (BPCL).
In accordance with the Ministry of Petroleum and Natural Gas’s directives, MNGL began operations in 2006. With permission from the Petroleum & Natural Gas Regulatory Board (PNGRB), MNGL is able to plan, construct, run, and expand city gas distribution projects in Pune and Pimpri-Chinchwad city, as well as the nearby communities of Hinjewadi, Chakan, and Talegaon.
