Shares of Mahanagar Gas (MGL) rose over 12 percent on Tuesday after British Gas exited the company by selling its remaining 10 percent stake in Mahanagar Gas. The British company has sold its holdings in MGL via block deals today, reported CNBC-TV18, citing sources.

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Mahanagar Gas shares jumped as much as 12.08 percent to Rs 882.10 per share on the NSE. At 11:25 AM, MGL's stock price was trading at 848.60 per share, up 7.83 percent from its previous close. The benchmark Nifty was down 0.4 percent at 11,009.05.

Analysts said British Gas' exit is unlikely to impact Mahanagar Gas. "We do not foresee the exit of British Gas to have any negative fundamental impact on MGL since they have been in the business for over 20 years and it is more process-driven from here on. Moreover, GAIL will continue to be a promoter in MGL," Jefferies said in a report.

British Gas held 32 percent stake in MGL and the company has been reducing its stake in MGL over a period of time. This is the last tranche of the sale and the floor price is set at Rs 733 per share, a near 7 percent discount to Monday’s closing price.

Jefferies also believes that this is a good opportunity to accumulate the stock given its attractive valuations. It sees a 78 percent upside in the stock at Rs 1,400 per share.

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First Published:Aug 20, 2019 11:30 AM IST