Shell says India business won’t be impacted after arm BG reduced stake on Mahanagar Gas

MUMBAI: Energy major Shell’s subsidiary BG Asia Pacific Holdings has sold part of its shareholding in Mahanagar Gas as part of its strategy to simplify its business, but remains optimistic about its ventures in India, the company said in a statement. BG Asia reduced its stake in Mahanagar Gas to 24% from 32.50% through deals on the bourses.

ET had reported that BG Asia will pare its holding in Mahanagar Gas through secondary market transactions on Wednesday. Shares of Mahanagar Gas fell 3% to close at Rs 917 at the Bombay Stock Exchange on Wednesday.

“This is part of Shell’s ongoing portfolio optimization to transform Shell into a simpler company, delivering stronger returns.


We believe in the key role that gas will play in India and continue to seek opportunities in that arena,” Shell said in a statement.

Shell said that the transaction would not have any impact on its other businesses in India. “Our investment in the Hazira LNG receiving terminal in Gujarat and the recent creation of Shell Energy India, our gas marketing and trading business, prove our commitment to grow in India and to increase gas penetration in the country,” the company said.

State-run GAIL (India) holds 32.50% in Mahanagar Gas while the government of Maharashtra holds 10% in the company. “Shell believes that India offers a vast opportunity for growth of Shell’s businesses and we will continue to pursue opportunities which can enhance Shell’s footprint in the country, including in the retail network, and our custombuilt Technology and IT Centre in Bengaluru,” Shell said.