Mahanagar Gas Limited (MGL) declared that it had signed a Shareholders’ Agreement (SHA) with 3EV Industries Private Limited to purchase a 30.97% stake in the business on Tuesday. In a regulatory filing, it stated, Mahanagar Gas Limited has entered into Shareholders’ Agreement (SHA) with 3EV Industries Private Limited (3ev), Founders, Promoters, and other Shareholders of 3ev, to acquire 30.97% shareholding in 3ev, subsequent to execution of Share Subscription Agreement (SSA).

It went on to say that an agreement has been reached to purchase 30.97% of 3EV's shares and voting rights using equity instruments. Mahanagar Gas also disclosed the issuance of 18,343 equity instruments, for a total consideration of Rs 96 crore, comprising 10,010 equity shares with a face value of Rs 10 and 18,333 Series A CCPS with a face value of Rs 100 each. According to the SHA's terms and conditions, the equity instruments would be issued in tranches, it stated.

Following this, MGL will be able to designate one director and one board observer to the 3EV board. Additionally, MGL will be entitled to subscribe shares on a pro-rata basis for each subsequent share issuance in addition to having the right to subscribe for 30.97 percent of 3EV's share capital. Furthermore, Affirmative Vote topics—which include, among other things, topics pertaining to changes in the company's capital structure—will require the prior written permission of MGL.

Mahanagar Gas reported its third-quarter profits earlier in January, bringing in Rs 1,568.76 crore from its activities. The December Quarter's total sales volumes, which Mahanagar Gas reported at 3.671 mmscmd (million standard cubic meters per day), 2.69] percent increased sequentially. The same increased 7.6% annually over the previous year.