Mahanagar Gas makes a strong debut

The stock listed at Rs 540, a 28% premium against issue price of Rs 421 per share, on the National Stock Exchange.

Mahanagar Gas (MGL) has listed at Rs 540, a 28% premium against issue price of Rs 421 per share, on the National Stock Exchange (NSE). The stock hit high of Rs 549 within minutes of listing. It has touched a low of Rs 532 in intra-day so far.

At 10:01 the stock was trading at Rs 545, 30% higher as compared to its issue price on the NSE. A combined 5.5 million shares changed hands on the counter on the NSE and BSE so far. LINK

The company has mopped up Rs 1,039 crore through its initial public offer (IPO), which garnered nearly 65 times subscription.

The qualified institutional buyer (QIB) segment was subscribed around 73 times, high networth individual (HNI, or rich) segment saw a whopping 192 times subscription, while the retail (small investor) category saw nearly seven times more demand than the shares on offer. LINK
 

Employee portion was subscribed by 1.18 times. A discount of Rs 38 per equity share has been offered to eligible employees.

The IPO was entirely an offer for sale of 24.7 million shares (25% stake) by the promoters GAIL and BG Asia Pacific Holdings PTE Ltd (12.3 million shares each). The entire IPO consists of an offer for sale and the company not received any funds raised from the issue.

MGL is one of the largest city gas distribution (CGD) companies in India with more than 20 years of experience in supplying natural gas in Mumbai. MGL is presently the sole authorised distributor of compressed natural gas (CNG) and piped natural gas (PNG) in Mumbai, its adjoining areas and Raigad district in Maharashtra.