Mahanagar Gas has announced curtailment of gas supply to its industrial and commercial (I&C) customers following government directives prioritizing domestic and transport sectors. The company filed a regulatory intimation under SEBI Listing Regulations citing geopolitical developments impacting global energy markets and subsequent government orders affecting gas distribution priorities.

Government Order Details

The Ministry of Petroleum and Natural Gas issued the Natural Gas (Supply Regulation) Order, 2026 dated March 09, 2026, establishing a priority framework for natural gas distribution. The order prioritizes supply to Domestic Pipeline Natural Gas (DPNG) and Compressed Natural Gas (CNG) sectors while advising curtailment of gas supply to industrial and commercial customers.

Supply Disruption Context

The regulatory filing indicates that geopolitical developments in the Middle East have disrupted liquefied natural gas shipments through the Strait of Hormuz. Gas suppliers have invoked force majeure clauses, leading to supply curtailments that have impacted the company's ability to serve industrial and commercial customers at normal levels.

Company Response and Compliance

Mahanagar Gas confirmed it has initiated necessary steps to align its gas supply distribution in accordance with the prescribed government directions. The company is currently assessing the impact of these developments and monitoring the situation closely for material updates.

The company stated it will inform stock exchanges of any material updates or developments as the situation evolves. This curtailment represents a significant operational adjustment as industrial and commercial segments typically constitute substantial portions of city gas distribution networks.

Eastspring Investments (Singapore) Limited has crossed the substantial shareholding threshold in Mahanagar Gas Limited, acquiring a 5.01% stake in the natural gas distribution company through open market purchases.

Acquisition Details

The Singapore-based investment firm, operating as a subsidiary of Prudential plc, purchased 66,037 shares of Mahanagar Gas Limited on March 9, 2026. This acquisition increased Eastspring's total shareholding from 4,886,097 shares to 4,952,134 shares, representing an increase from 4.95% to 5.01% of the company's total equity share capital.

Regulatory Compliance

Following the acquisition, Eastspring Investments filed the mandatory disclosure under Regulation 29(1) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The disclosure was submitted to BSE Limited on March 11, 2026, signed by Lim Siew May, Director of Global Shareholding Reporting at Eastspring Investments (Singapore) Limited.

Company Structure and Holdings

The disclosure identifies Prudential plc and its subsidiary companies as the acquirer group, with Eastspring Investments (Singapore) Limited acting as the executing entity. The investment firm confirmed that it does not belong to the promoter or promoter group of Mahanagar Gas Limited.

Share Capital Information

Mahanagar Gas Limited's equity share capital remained unchanged at INR 987,777,780 both before and after the acquisition. The company's shares are listed on both BSE Limited and the National Stock Exchange of India Limited, providing liquidity for institutional investors like Eastspring Investments.

The acquisition represents a strategic investment by the Prudential group in India's natural gas distribution sector, with Eastspring Investments now holding a meaningful stake in one of the country's leading city gas distribution companies.