Mahanagar Gas public issue to open on June 21

Our Bureau Mumbai | Updated on January 20, 2018

Rajeev Mathur, MD, Mahanagar Gas, at a press conference to announcethe firm’s IPO in Mumbai on Tuesday PAUL NORONHA

Price band for ₹1,039-cr issue is fixed at ₹380-421

Mahanagar Gas has fixed a price band of ₹380-421 for its initial public offering. This includes an offer-for-sale of up to 1.23 core equity shares each by its promoters GAIL and BG Asia Pacific Holdings Pte Ltd.

The issue size works out to ₹1,039.6 crore at the upper end of the price band and the proceeds would go to the selling shareholders. The issue opens for subscription on June 21 and closes on June 23.

The OFS has an employee reservation portion of two lakh shares. The QIB portion in the issue is 50 per cent, non-institutional investor portion 15 per cent and the retail portion is 35 per cent. Up to 60 per cent of the QIB portion is likely to be allocated to anchor investors. Of this, at least a third will be available for allocation to domestic mutual funds, provided valid bids are received from them at or above the anchor investor allocation price.

For the last 20 years, the company has been supplying compressed natural gas and piped natural gas to Mumbai and adjoining areas of Thane Navi Mumbai and Raigad. In FY16, it had a top-line of ₹2,120 crore, net worth of ₹1,530 crore and customer base of 13.4 lakh. It supplied CNG to over 4.7 lakh vehicles through its network of 188 filling stations and about 8.6 lakh households as on March 31.

Kotak Mahindra Capital and Citigroup Global Markets India are the book running lead managers while Link Intime is the registrar to the issue.

Published on June 14, 2016

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