India's IL&FS divests stake in Maharashtra Natural Gas

MNGL, which is based in Pune, distributes natural gas to various sectors in the city. It operates service stations for automobiles, along with pipelines for domestic, commercial, and industrial use.

Parag Baduni, a partner at IL&FS, said that the 4.1x multiple - which includes dividends received - was on an investment of $4 million made in 2009. The PE firm committed capital through its Pan Asia Project Development Fund. Axis Bank and IDFC also invested in the company at that time, committing $2 million and $4 million, respectively. Those firms have also exited their stakes to IGL.

The deal was possible because of IL&FS' previous relationship with IGL. The firm was one of the original investors in the Delhi-based company in 2000, and continued its interactions with IGL after the company went public in 2003. One significant collaboration was the sale by IL&FS-managed funds of a stake in Central UP Gas Limited (CUGL) to IGL in 2013. Baduni said that deal laid the groundwork for this sale.

"I remember, on the day when we were transferring the CUGL shares, and we were having the board meeting, IGL had expressed interest in MNGL as well," Baduni said.

With the sale of MNGL, IIML has no remaining involvement in the natural gas distribution sector.

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• Topics
• South Asia
• Exits
• Infrastructure
• Venture
• GPs
• IL&FS Investment Managers
• India
• Trade sale
• Exit
• Infrastructure
• GPs