Mahanagar Gas Limited (MGL) announced the acquisition of a 26% equity stake in FPEL Reliant Energy Private Limited for an investment of up to Rs. 389 Lakh. This strategic move aims to establish a solar power plant in Maharashtra to secure green energy for MGL’s CNG stations. The transaction, finalized on March 09, 2026, will make FPEL Reliant an associate company post-acquisition.
Strategic Investment in Renewable Energy
Mahanagar Gas Limited (MGL) has formally entered into a Share Subscription and Shareholders’ Agreement (SSA & SHA) with FPEL Reliant Energy Private Limited and its holding company, FPEL Saur Vidyut Private Limited. This agreement, signed on March 09, 2026, marks MGL’s commitment to sustainable energy sourcing.
Deal Rationale and Financials
MGL is acquiring a 26% equity stake in FPEL Reliant by investing an amount of up to Rs. 389 Lakh. The primary objective is to establish a dedicated solar power plant within the State of Maharashtra. This initiative is designed to meet the company’s green energy needs, optimize energy costs, and comply with evolving regulatory mandates for power consumption, particularly as per the Electricity Act, 2003.
Key Transaction Details
- Target Entity: FPEL Reliant Energy Private Limited.
- Acquisition Size: 26% Equity Shares of FPEL Reliant.
- Consideration Type: Cash Consideration.
- Indicative Completion: Within 6 Months from the SSA & SHA execution date.
Target Entity Profile
FPEL Reliant operates in the Generation and transmission of solar energy and other renewable sources. The entity was incorporated relatively recently on July 05, 2022. Notably, the last three reported financial years (2022-23 through 2024-25) showed zero turnover. As of March 31, 2025, the entity reported a net worth of (-) Rs. 4.73 Lakh.
Related Party Implication
While the initial transaction is not classified as a related party transaction, the disclosure confirms that post-acquisition, FPEL Reliant will become an associate company of MGL and consequently be treated as a related party.
Source: BSE
