Shares of the country’s second largest CNG retailer Mahanagar Gas were off to a robust start at the bourses today, with the stock closing the day nearly 24 per cent higher, against the issue price of Rs 421.

The stock which listed at Rs 540, a premium of 28.26 per cent on the BSE, finally closed the day with a gain of 23.49 per cent at Rs 519.90. Intra-day, it soared 30.43 per cent to Rs 549.15.

On the NSE, shares of the company ended 23.58 per cent higher at Rs 520.30.

On the volume front, 38.11 lakh shares of the company were traded at BSE and over 2 crore shares changed hands at NSE during the day.

The initial share sale of Mahanagar Gas was subscribed 64.54 times last week.

Portion reserved for qualified institutional buyers (QIBs) was subscribed 72.84 times and non-institutional investors’ 191.61 times.

Retail investors category saw an oversubscription by 6.82 times.

The price band for the IPO was fixed at Rs 380—421.

Mahanagar Gas, promoted by state—run GAIL and British Gas Asia Pacific Holdings, made an offer for sale of up to 24,694,500 equity shares of Rs 10 each.

The money raised through the IPO would accrue to the promoters who are selling their stake.

Mahanagar Gas, a major distributor of compressed natural gas (CNG) and piped natural gas (PNG) in Mumbai and adjoining areas, receives gas at its stations located at Wadala, Mahape, Ambernath and Taloja in and around Mumbai through pipelines owned by GAIL.

The company’s IPO hit the market after a gap of more than a month after Parag Milk Foods’ offer in early May.

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