Shares of Mahanagar Gas slipped more than 5 percent in the opening trade on Thursday as company’s promoter is going to sell its stake through block deal.
BG Asia Pacific Holding, the foreign promoter of the company is likely to sell 14 percent stake in the company through a block deal on Thursday, CNBC-TV18 reported.
The floor price for this transaction has been set at Rs 851 per share.
BG Asia Pacific, which is owned by Royal Dutch Shell Plc, is going to sell 1.38 crore shares, which are valued at USD 170 million in all, through the block deal.
After this block deal, BG Asia Pacific’s shareholding in the company will be reduced to 10 percent from 24 percent earlier. The TV channel reported that the residual 10 percent stake has a lock-in period up to June 29, 2019.
Mahanager Gas, which listed in July 2016, is a joint venture between GAIL and BG Asia Pacific Holdings Pte Limited, which hold 32.5 percent each. BG Asia had reduced its stake in the company to 24 percent from 32.5 percent in April 2018.
Citi is the book runner to the deal.
However, there was a block deal of 15.6 percent equity shares worth of Rs 1,334 crore on BSE & NSE at an average price of Rs 860 per share on Thursday.
At 09:22 hrs Mahanagar Gas was quoting at Rs 856.85, down Rs 43.00, or 4.78 percent on the BSE.