by Suman Gupta
Mumbai, February 2024 – Mahanagar Gas Limited (MGL), one of the largest city gas distribution companies in India, announces the acquisition of 100% equity stake in Unison Enviro Private Limited (UEPL). This strategic acquisition, the first in MGL’s history, solidifies the company’s commitment to its long-term growth strategy.
The acquisition was completed on 1st February 2024, subsequent to the receipt of approval from Petroleum and Natural Gas Regulatory Board (PNGRB) on 13th December 2023. Prior to the transfer, Ashoka Buildcon Ltd. (ABL) and an investment fund managed by Morgan Stanley India Infrastructure (MSII) held equity in UEPL.
Mr. Ashu Shinghal, Managing Director, Mahanagar Gas Limited said, “Unison Enviro Private Limited is our first acquisition. It is a momentous occasion for MGL, marking a significant milestone in our corporate history. The acquisition of UEPL aligns with our commitment towards realising our long-term growth plans. It will not only help expand our core business of City Gas Distribution but will also help UEPL in ensuring a higher growth trajectory by leveraging deep domain knowledge, optimisation of cost structure through possible integration and synergies.”
“We extend a warm welcome to the employees, partners, vendors, and customers of UEPL into the MGL family”, he added.
Mr. Ashish Kataria, Director of Ashoka Buildcon Limited, said, “The transaction showcases ABL’s ability to identify, implement and successfully divest in new and promising sectors. We have reiterated our commitment to give our investors a good return and help the country transition to cleaner energy. We thank our investor Morgan Stanley India Infrastructure for their contribution in making this a successful venture. With Mahanagar Gas Limited acquiring hundred per cent stake in UEPL, we are delighted to have delivered value to all its stakeholders.”
Mr. Shyamsundar Gurumoorthy, Managing Director of Morgan Stanley India Infrastructure, added, “At the time of our investment, UEPL was a pre-revenue company and its scale-up to a profitable business serving 25,000+ customers has been a rewarding journey. We are proud to have partnered with Ashoka Buildcon Limited to build UEPL.”
The Share Purchase Agreement between MGL, UEPL, and its shareholders, ABL and MSII, was signed on 3rd March 2023, resulting in the acquisition at a cash consideration of Rs 562 crore. HDFC Bank served as the exclusive Transaction Advisor to MGL, while Kotak Mahindra Capital Company was the exclusive financial advisor to Ashoka Buildcon Limited and the investment fund managed by Morgan Stanley India Infrastructure.
In addition to this landmark acquisition, MGL has further diversified its energy portfolio with the establishment of Mahanagar LNG Private Limited. MGL is also working with Brihanmumbai Municipal Corporation (BMC) to set up one of the largest Biogas plants based on Municipal Solid Waste in Mumbai. Hydrogen, EV, Renewables are adjacent areas for MGL to expand its energy portfolio for which the company is actively engaged in exploring opportunities to fuel its growth.
About Mahanagar Gas Limited:Mahanagar Gas Limited (BSE: 539957, NSE: “MGL”) is one of India’s leading Natural Gas Distribution Company based out of Mumbai, that provides clean and affordable fuel to over 2.3 million households, around 0.97 million vehicles including 4700 commercial and industrial establishments. MGL has an experience of over 28 years in supplying Natural Gas by way of Compressed Natural Gas (CNG) to vehicles and Piped Natural Gas (PNG) to domestic, commercial, and industrial consumers in Mumbai, Navi Mumbai, Thane including adjoining areas and Raigad district. For more information about Mahanagar Gas Limited, please visithttp://www.mahanagargas.com.
About Unison Enviro Private Limited:Unison Enviro Private Limited is a subsidiary company of Ashoka Buildcon Limited. UEPL has been granted authorization from Petroleum and Natural Gas Regulatory Board (PNGRB) to develop City Gas Distribution business in districts of Ratnagiri, Latur, Osmanabad and Chitradurga & Davanagere. It is engaged in supplying natural gas to domestic, commercial, industrial and transport sector.
About Ashoka Buildcon Limited:Ashoka Buildcon Limited (BSE:533271, NSE: ASHOKA EQ) Ashoka Buildcon Limited is a Fortune India 500 company and one of the leading highway developers in India. The company is an integrated EPC, BOT and HAM player. The Company has experience of more than 28 years in the field of construction and infrastructure development. The Company has executed / been executing 41 PPP Projects and has presence over 20 states in the country. The Company has constructed various prestigious projects across the country in roads and highways sectors.
About Morgan Stanley:Morgan Stanley (NYSE: MS) is a leading global financial services firm providing investment banking, securities, wealth management and investment management services. With offices in more than 41 countries, the Firm’s employees serve clients worldwide including corporations, governments, institutions and individuals. For more information about Morgan Stanley, please visithttp://www.morganstanley.com.
Morgan Stanley India Infrastructure is the India infrastructure investing platform of Morgan Stanley Infrastructure Partners. Part of Morgan Stanley Investment Management, Morgan Stanley Infrastructure Partners is a leading global infrastructure investment platform with offices in New York, London, Melbourne, Hong Kong, Amsterdam and Mumbai.
