Financial Daily from THE HINDU group of publications
Saturday, Dec 27, 2003
Financial Daily from THE HINDU group of publications Saturday, Dec 27, 2003 |
|
|
|
|
|
Home Page
-
Petroleum Markets - Stocks Indraprastha Gas shares debut at 150 pc premium Our Bureau
PREMIUM DEBUT: Mr A.K. De, Managing Director, Indraprastha Gas Ltd, striking the ceremonial gong at the Bombay Stock Exchange on Friday. Mr P.S. Bhargava, Director - Commercial (left), looks on. _ Shashi Ashiwal
Mumbai , Dec. 26 SHARES of Indraprastha Gas Ltd (IGL) made their debut on the bourses today with the stock listing at a premium of almost 150 per cent at Rs 119.50 compared with the offer price of Rs 48 per share. The volumes, both on NSE and BSE, were high. On NSE, a total of 1.98 crore shares were traded and on BSE 98.01 lakh shares. A total of 2.96 crore shares were traded today compared with the issue size of four crore shares. IGL is engaged in the business of distribution and sale of compressed natural gas (CNG) to the automotive sector and piped natural gas (PNG) to domestic and commercial customers in Delhi. The listing price of IGL was way above market expectations. Reacting to the price, al analysts said the bullish sentiment in the overall market was the main factor for such a huge premium for IGL stock. An analyst with a foreign broking firm said, "At current price, the stock is quoting at a price-earning ratio of over 20 and such valuations are not justified". In comparison with IGL, Gail is trading at P/E ratio of 10 and the size of Gail is much bigger, he said. Gail has 22 per cent stake in IGL. In addition, it has a stake in Mahanagar Gas, the company that distributes CNG and PNG in Mumbai. On the listing of the shares, the IGL Managing Director, Mr A.K. De, said "This is a historic occasion for IGL and we are aware of the responsibility of honouring the confidence that the IPO subscribers have reposed in us".
Article E-Mail :: Comment :: Syndication
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | Home |
Copyright © 2003, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|