The Hindu Business Line : Mahanagar Gas plans IPO before Dec 2005

THE city-based piped gas provider Mahanagar Gas Ltd plans to come out with its initial public offer before December 2005 to divest around 30 per cent promoters' stake.

"We plan to come out with an IPO before December 2005, the process for which will start by March 2005," Mr A.K. Purwaha, MGL's Managing Director said here today.

Mr Purwaha said the company plans to invest Rs 180 crore to expand operations. MGL has reached its piped gas network to the outskirts of Mumbai to suburbs including Mira-Bhayendar, Vashi and Belapur.

MGL is a joint venture between GAIL(India) and British Gas holding 49.75 per cent each and Maharashtra Government holding 0.5 per cent.

Post-IPO, the stake of GAIL (India) stake and BG will come down to 35 per cent each while around 30 per cent will be held by the State Government and public.

Mr Purwaha today announced MGL's tie up with the Department of Posts for allowing its consumers to pay their bills through 170 post offices. Around 3,500 postmen will be able to collect payment for gas bills. MGL plans to expand its operations to other cities in Maharashtra including Nasik and Solapur as and when gas from Reliance's K-G basin gas field on the east coast is available.

MGL plans to add 50,000 households each year to its existing customer base of about two lakh. It plans to increase the number of its CNG refuelling stations to 125 from the present 89 by June 2005 and the compression capacity to 15 lakh kg from 9.6 lakh kg.

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Mahanagar Gas plans IPO before Dec 2005