GAIL (India) inches up ahead of IPO of Mahanagar Gas

GAIL (India) was up 0.4% at Rs 374.10 at 14:33 IST on BSE ahead of divestment of a part of its stake in Mahanagar Gas through an initial public offer.

Meanwhile, the S&P BSE Sensex was up 253.82 points or 0.96% at Rs 26,649.53.

On BSE, so far 74,647 shares were traded in the counter as against average daily volume of 1.21 lakh shares in the past one quarter.

The large-cap firm has equity capital of Rs 1268.48 crore. Face value per share is Rs 10.

The GAIL (India) stock has risen 1.35% in three trading sessions from its close of Rs 369.10 on 10 June 2016.

GAIL (India) and BG Asia Pacific Holdings Pte, the two promoters of Mahanagar Gas (MGL), are selling about 1.23 crore shares each of MGL via an initial public offer (IPO) of MGL. MGL will not get any proceeds from the IPO. The IPO opens for bidding on 21 June 2016 and concludes on 23 June 2016. The price band for the IPO has been set at Rs 380 to Rs 421 per share.

GAIL (India) and BG Asia Pacific Holdings Pte hold about 4.44 crore shares each in MGL, constituting 45% stake each. The Maharashtra state government holds the remaining 10% stake.

Mahanagar Gas is one of the largest city gas distribution companies in India. It is presently the sole authorized distributor of compressed natural gas and piped natural gas in Mumbai, its adjoining areas and the Raigad district of Maharashtra.

State-run GAIL (India) is India's largest natural gas company with a market share of over 80% in natural gas transmission. Apart from natural gas transmission, distribution and processing, GAIL has diversified business interests in LPG transmission, petrochemicals, city gas projects and exploration and production activities.

GAIL (India)'s net profit 50.8% to Rs 769.99 crore on 18.3% decline net sales to Rs 11627.20 crore in Q4 March 2016 over Q4 March 2015.

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