Indraprastha Gas, a natural gas distribution company, announced Thursday the company has signed share purchase agreement to acquire upto 50 million equity shares of Rs 10 each of Maharashtra Natural Gas (MNGL) for Rs 1.90 billion.

Indraprastha Gas will pay a price of Rs 38 a share for acquisition of 50 million shares from certain financial investor shareholders of MNGL.

The share purchase will be done in such a manner so that upto completion of the proposed transaction the company's shareholding in MNGL shall not exceed 50% of the issued, subscribed and paid up share capital of MNGL.

Earlier on Aug. 4, 2014, the company has produced letter regarding the decision of the board of the company to invest in the equity shares of MNGL.

Shares of the company gained Rs 3.4, or 0.91%, to trade at Rs 377.85. The total volume of shares traded was 41,907 at the BSE (3.03 p.m., Thursday).