The Hindu Business Line : GSPL IPO to open on Jan 24

Mr Balwant Singh (right), Chairman, Gujarat State Petronet Ltd, with Mr D.J. Pandian, MD, at a press conference to announce the company's IPO in Mumbai on Monday. - Paul Noronha

Mumbai , Jan. 16

GAS transmission company, Gujarat State Petronet Ltd (GSPL), is entering the capital market with a public issue of 13,80,00,000 equity shares of face value of Rs 10. The price band for the issue is fixed between Rs 23 to Rs 27 per share. The offer opens on January 24 and closes on January 28.

GSPL had revenues of Rs 91.23 crore, Rs 142.09 crore and Rs 205.5 crore in 2002-03, 2003-04 and 2004-05, respectively. During these years, the GSPL net profits were Rs 5.1 crore, Rs 12.22 crore and Rs 16.09 crore, respectively.

For the first six months this fiscal, the company had revenues of Rs 125.65 crore and earned net profit of Rs 25.87 crore. As on September 30, 2005, the company has a gross asset base of Rs 900 crore.

Mr D.J. Pandian, Managing Director, GSPL, briefing the media here on Monday, said the IPO was likely to raise Rs 370 crore. The proceeds of the issue would be utilised for part funding, the construction of 742 km gas transmission pipelines by July 2007. The company currently has a network of 433 km of gas pipeline in Gujarat.

"Anticipating a big demand for gas from Maharashtra in the near future, we would be constructing a 30-inch pipeline up to Vapi," he said.

Mr Balwant Singh, Chairman, GSPL, said this was the first company in India to transport natural gas on an `open access' basis. "We do not own the natural gas that we transmit and therefore we do not assume any natural gas commodity price risk," Mr Singh said.

Gujarat State Petroleum Corporation Ltd (GSPC) is the main promoter of the company.

The book running lead managers to the issue are Kotak Mahindra Capital Company Ltd, HSBC Securities & Capital Markets (India) Pvt Ltd and ICICI Securities Ltd. Karvy Computershare Pvt Ltd is the registrar to the issue.