Bombay Gas Company Limited Unlisted Shares

About Company

The following table shows a 10-point analysis of Bombay Gas Company Limited. We will discuss each point in detail after this table.

Company Overview

Bombay Gas Company Limited is a Mumbai-based public limited company with roots going back to the gas distribution business. Its current activities include investment and leasing activities, and the company has been registered as an NBFC with the Reserve Bank of India since 1998. Historically, the company operated a gas distribution network in South and Central Mumbai. According to its annual report disclosures, the Group had created approximately 450 km of cast-iron gas distribution pipelines.

The company's historic gas pipeline infrastructure subsequently became relevant to the development of fibre infrastructure. CloudExtel's official history states that the Bombay Gas Company infrastructure was leveraged for deploying fibre-optic cables inside the existing cast-iron pipeline network. 

Bombay Gas also had a significant connection with Excel Telesonic India Private Limited, the company associated with the CloudExtel digital-infrastructure business. In April 2023, Bombay Gas entered into a Share Purchase and Subscription Agreement with Macquarie Digital Networks and sold a substantial stake in Excel Telesonic. The FY2023 annual report disclosure states that Bombay Gas subsequently retained a 12.58% stake. 

Challenges in Bombay Gas Company's Business

The following are the key challenges and considerations:

• Dependence on investment and financial activities: The current business profile includes investment, leasing, and financial activities, making returns dependent on the performance and value of the underlying assets and investments.
• Reduced telecom exposure after stake sale: Bombay Gas sold a substantial stake in Excel Telesonic in 2023. Therefore, the earlier telecom/digital-infrastructure business should not simply be treated as wholly owned current operations of Bombay Gas.
• Financial volatility: FY2024 revenue and profitability were materially influenced by the transaction involving Excel Telesonic. Consequently, year-on-year comparisons between FY2024 and FY2025 need to be interpreted carefully rather than viewed only as a normal operating-growth trend.
• Unlisted-company liquidity: Bombay Gas Company Limited is not listed on a recognised stock exchange. As a result, its shares do not have the same continuous public-market liquidity and price discovery as listed securities.
• Dependence on underlying investments: The value and returns generated by the company's investment portfolio can influence its overall financial performance.

Financial Review of Bombay Gas Company

Bombay Gas Company Limited has reported substantial variation in its financial performance over the recent financial years. The FY2024 numbers were particularly influenced by the sale of the stake in Excel Telesonic India Private Limited.

According to the company's FY2023 annual report disclosures:

• Bombay Gas entered into a Share Purchase and Subscription Agreement with Macquarie Digital Networks in April 2023 and sold its stake in Excel Telesonic. The consolidated accounts recognised a net profit on sale of the subsidiary group of ₹34,415.25 lakh, or approximately ₹344.15 crore.
• For FY2025, publicly available financial records report revenue of approximately ₹17.21 crore, PBT of approximately ₹11.49 crore, and PAT of approximately ₹8.61 crore. 

Financial Highlights

Recent Developments

The recent development of the company includes:

• Digital-infrastructure transition: The historical Bombay Gas pipeline network played a role in enabling fibre deployment, which subsequently became part of the CloudExtel digital-infrastructure story.
• 2023 strategic transaction: Macquarie Capital and Advencap acquired a majority stake in CloudExtel, while Bombay Gas's stake in Excel Telesonic was substantially reduced through the 2023 transaction.
• Institutional funding at CloudExtel: CloudExtel states that it secured its first external debt financing in 2024 from NIIF Infrastructure Finance Limited and Aditya Birla Finance Limited. This relates to the CloudExtel operating business and should not be presented as fresh debt raised directly by Bombay Gas Company Limited.
• Current CloudExtel scale: CloudExtel's official website currently reports more than 6,600 small-cell sites, 12,23,800 homes passed, 14,900+ km of fibre laid, 4,000+ societies and presence across 500 cities. These figures belong to CloudExtel and are included only to explain the operating business historically connected with Bombay Gas.

Quick Summary

Bombay Gas Company Limited is an unlisted public company with a long operating history dating back to 1982. The company has evolved considerably from its historical gas-distribution roots and currently has activities involving investments, leasing, and financial services. It has also had an important connection with India's digital-infrastructure sector through its investment in Excel Telesonic, associated with the CloudExtel business.