Mahanagar Gas Limited Unveils Acquisition of Unison Enviro Pvt. Ltd.
The news from our sources reveals that Mahanagar Gas Limited (MGL) has unveiled the acquisition of a full 100% equity interest in Unison Enviro Pvt. Ltd. (UEPL). The transaction, which amounts to Rs 562.09 crore, was formally completed on February 1, 2024. The comprehensive deal comprises a corporate assurance granted to UEPL’s lenders, covering term loans amounting to Rs 543 crore, and working capital facilities reaching up to Rs 23 crore.
The Green Light and Future Expansion Proposals
Following the nod from the Petroleum and Natural Gas Regulatory Board (PNGRB) confirming their endorsement on December 13, 2023, this acquisition was made possible. UEPL has received permission from PNGRB to promote city gas distribution in selected cities across Maharashtra and Karnataka. Furthermore, the company also supplies natural gas across a broad range of sectors. This strategic acquisition enables MGL to expand their market presence and foster synergies for further growth in future.
Diversifying the Energy Product Mix
In addition to the UEPL acquisition, MGL has further grown its energy product mix. The company has announced the inauguration of Mahanagar LNG and is working with the Brihanmumbai Municipal Corporation (BMC) to build a large-scale biogas plant based in Mumbai. MGL is consistently investigating potential opportunities within the hydrogen, electric vehicle, and renewable energy sectors.
The Dominance of MGL within the Gas Distribution Space in Mumbai
MGL maintains its dominance within the gas distribution niche in Mumbai, with a significant focus on the Compressed Natural Gas (CNG) business, which generates most of the company’s income. Despite net revenue decreasing by 6% year-over-year, the company reported a significant increase in Q3 FY24’s net profits, which rose by 84% to Rs 317.18 crore from Rs 172.07 crore, compared to the same period in the last financial year.
