The Hindu Business Line : Gujarat State Petronet plans IPO shortly

GUJARAT State Petronet Ltd (GSPL), the gas distribution entity of Gujarat State Petroleum Corporation (GSPC), will come out with an initial public offering (IPO) in the next couple of months to fund the second phase of its pipeline project.

"We plan to enter the capital markets by December or January to raise funds for our expansion plans. We are offering 130 million shares that constitute 25 per cent of our paid-up capital through the book building process," the GSPC Managing Director, Mr D. J. Pandian, told Business Line.

Kotak Mahindra Capital has been appointed as the lead manager to the issue that would be co-managed by HSBC Securities Ltd and ICICI Securities Ltd.

GSPL filed its draft red herring prospectus with SEBI on Friday. Out of the issue, 15 per cent of the shares would be reserved for high net-worth individuals, while 35 per cent would be for retail investors. Qualified institutional buyers will be allotted the balance 50 per cent of the shares. GSPL, which is laying a 2,200-km gas grid across Gujarat, will use the funds for its 752-km expansion project that would take the gas pipelines to towns such as Rajkot, Morbi, Mehsana and Himmatnagar. The Gujarat Government, through GSPC, owns 79.5 per cent of the equity in GSPL, while the IDFC-promoted India Development Fund holds the balance 20.5 per cent. .

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