Mahanagar Gas’ Rs.1,040 crore IPO to open on June 21

With a price band of Rs.380 - Rs.421, the company aims to raise Rs.1,040 at the upper end of the price band.

Jun 14, 2016 03:06 IST India Infoline News Service

News Newspaper Text
Mahanagar Gas Ltd (MGL), a joint venture between GAIL (India) and BG Asia Pacific Holdings Pte Ltd (BGAPH), will hit the capital market with an initial public offering (IPO), which will open on June 21 and will close of June 23, 2016.

With a price band of Rs.380 - Rs.421, the company aims to raise Rs.1,040 at the upper end of the price band.

MGL is the sole authorized distributor of compressed natural gas (CNG) and piped natural gas (PNG) in Mumbai and its Adjoining Areas and the Raigad district in the state of Maharashtra, India.

The offer consists of offer for sale of up to 12,347,250 (12.5%) equity shares by GAIL and up to 12,347,250 (12.5%) equity shares by BGAPH. The Government of Maharashtra holds 10% stake in the company. Post offer, the share holding of GAIL and BGAPH will come down to 32.5% each.

The company currently has nearly 8.5 lk customers for PNG that includes households and commercial customers too, while nearly 4.70 vehicles run on CNG sold by the company through a network of 188 CNG stations.

The offer includes a reservation of up to 200,000 Equity Shares for subscription by eligible employees on a competitive basis. This Offer is being made through the book building process where 50% of the offer, less the employee reservation portion shall be available for allocation on a proportionate basis to QIBs.

MGL and the Selling Shareholders may, in consultation with the Book Running Lead Managers, allocate up to 60% of the QIB Portion to Anchor Investors, on a discretionary basis, (“Anchor Investor Portion”) at the Anchor Investor Allocation Price, in accordance with the SEBI ICDR Regulations, out of which at least one third will be available for allocation to domestic Mutual Funds only subject to valid Bids received from domestic Mutual Funds at or above the Anchor Investor Allocation Price.

In event of under-subscription, or non-allocation in the Anchor Investor Portion, the balance Equity Shares shall be added to the QIB Portion. Equity Shares representing 5% of the QIB Portion (excluding the Anchor Investor Portion) shall be available for allocation on a proportionate basis to Mutual Funds only.

Kotak Mahindra Capital Company Limited and Citigroup Global Markets India Private Limited are the Book Running Lead Managers to the offer. The Registrar to the offer is Link Intime India Private Limited.

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