Mahanagar Gas IPO may fetch Rs. 1,040 cr

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Mumbai’s gas distribution firm Mahanagar Gas Ltd. (MGL), jointly promoted by GAIL (India) Ltd. and BG Asia Pacific Holdings Pte Ltd., has fixed a price band of Rs.380–Rs.421 per share for its forthcoming initial public offering (IPO) and is likely to raise Rs.1,040 crore at the upper end of the price band.

“The IPO will be open on June 21 and will close on June 23 and the anchor investors shall bid one working day prior to the bid/offer opening date, that is, on June 20, 2016,” according to a company statement. Both promoters will offload 12.34 crore shares each to reduce their shake from 45 per cent to 32.5 per cent in the company. Government of Maharashtra will continue to hold 10 per cent stake in the company post issue.

Kotak Mahindra Capital Company Ltd. and Citigroup Global Markets India Pvt. Ltd. are the Book Running Lead Managers (BRLMs) to the offer while Intime India Pvt. Ltd. is the Registrar to the offer.

According to its IPO prospectus, the company will not issue any additional shares, and proceeds from the IPO will directly go to the two holding companies that will be offloading 12.5 per cent stake each. The offer includes a reservation of up to two lakh equity shares for subscription by eligible employees on a competitive basis.