Mahanagar Gas IPO opens on 21 June 2016

The price band for IPO fixed at Rs 380 to Rs 421

Mahanagar Gas is coming up with an initial public offer (IPO) of 2.46 crore shares through a 100% book building process. The IPO will open for subscription on 21 June 2016 and will close on 23 June 2016. The price band for the issue has been fixed at Rs 380 to Rs 421.

The IPO includes offer for sale of upto 1.23 crore shares by GAIL (India) and upto 1.23 crore shares by BG Asia Pacific Holdings PTE Ltd (BGAPH). The offer will constitute 25% of the post offer paid up equity capital of the company.

The objects of the offer are to achieve the benefits of listing the equity shares on the stock exchanges and to carry out the offer for sale. The company will not receive any proceeds from the offer and all proceeds from the offer shall go to the selling shareholders namely GAIL and BGAPH. The company is promoted by GAIL India and BGAPH, each of who holds 45% of the company's equity shares.

Mahanagar Gas' net profit rose 2.55% to Rs 308.68 crore on 0.65% decline in revenue to Rs 2121.62 crore in the year ended 31 March 2016 (FY 2016) over the year ended 31 March 2015 (FY 2015).

Mahanagar Gas is one of the largest city gas distribution (CGD) companies in India. The company has more than 20 years of experience in supplying natural gas in Mumbai and are presently the sole authorised distributor of compressed natural gas (CNG) and piped natural gas (PNG) in Mumbai, its adjoining areas and the Raigad district in the state of Maharashtra, India. GAIL is a Maharatna public sector undertaking and the largest natural gas transmission company in India and BGAPH is headquartered in Singapore and is a part of the Shell Group, an international exploration and production and LNG group of companies. Mahanagar Gas distributes CNG for use in motor vehicles and PNG for domestic household use as well as for commercial and industrial use.

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