Here’s what Shell India selling 10% stake in Mahanagar Gas means for the stock

Mumbai: Shares of Mumbai-based city gas distributor, Mahanagar Gas Ltd (MGL) jumped about 10% on Tuesday morning on the National Stock Exchange. Not without reason. Shell India is looking to sell its remaining 10% stake in MGL.

“One of the reasons why the stock has under-performed is the overhang of Shell potentially selling the remaining 10% stake in the company but with the overhang to be removed now, it could be positive for the stock,” said analysts from Jefferies India Pvt. Ltd in a report on 19 August.

The broker added, “We do not foresee the exit of Shell to have any negative fundamental impact on MGL since they have been in the business for more than 20 years and it is more process driven from here on.”