The floor price for this transaction has been set at Rs 851 per share, a 5.7 percent discount to Tuesday's closing price
BG Asia Pacific Holding, the foreign promoter of city gas distribution company Mahanagar Gas, 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, a 5.7 percent discount to Tuesday's closing price.
BG Asia Pacific, which is owned by Royal Dutch Shell Plc, is going to sell 1.38 crore shares, which are valued at $170 million in all, through the block deal.
After this block deal, BG Asia Pacific's shareholding in the Mumbai-based city gas distribution 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.
The stock price has risen spectacularly since listing, gaining 114 percent to Rs 899.85 from its issue price of Rs 421.