Mahanagar Gas IPO to kick start from June 21

Mahanagar Gas (MGL) will launch its initial public offering (IPO), which opens on June 21 and closes on June 23 with a price band of Rs 380 to Rs 421 per equity share of face value of Rs 10 each. The minimum bid lot is 35 equity shares and in multiples of 35 equity shares thereafter. The issue size of IPO is about Rs 938 crore to Rs 1040 crore.

MGL’s IPO offer is of up to 24,694,500 equity shares. The offer consists of offer for sale of up to 12,347,250 (12.5 per cent) equity shares by GAIL (India) and up to 12,347,250 (12 per cent) equity shares by BG Asia Pacific Holdings (BGAPH). The Government of Maharashtra holds 10 per cent stake in the company. Post offer, the shareholding of GAIL and BGAPH will come down to 32.5 per cent each.

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.

The offer includes a reservation of upto 200,000 equity shares for subscription by eligible employees on a competitive basis. The company’s IPO offer is being made through the book building process where 50 per cent of the offer shall be available for allocation on a proportionate basis to Qualified Institutional Buyers (QIBs).

MGL has around Rs 500 to Rs 600 crore cash on its books, out of which the company has reserved Rs 250 crore for funding capex requirements in FY17.

MGL is one of India’s leading natural gas distribution companies. The company has already connected approximately 8.2 crore households and over 2600 small commercial and 55 industrial establishments. It also supplies CNG to more than 4.2 crore vehicles which include above 1.9 crore rickshaws and over 50 lakhs taxis & above 1.8 crore cars in Mumbai, Thane, Mira-Bhayander, Navi Mumbai and beyond.