Mahanagar Gas makes decent debut

Shares of Mahanagar Gas settled at Rs 519.90 on BSE, at a premium of 23.49% over its initial public offer price of Rs 421 on its debut on the bourses today, 1 July 2016.

Meanwhile, the S&P BSE Sensex rose 145.19 points or 0.54% to settle at 27,144.91.

The stock made its debut on the bourses at Rs 540, at a premium of 28.26% over the issue price of Rs 421. The stock hit a high of Rs 549.15 and a low of Rs 517 in intraday trade. On BSE, 38.11 lakh shares were traded on the counter.

The initial public offer (IPO) of city gas distribution firm Mahanagar Gas had received bids for a total of 111.95 crore shares and its IPO was subscribed 64.55 times. The shares were allotted to the investors at Rs 421 per share, the top end of the Rs 380 to Rs 421 per share price band for the IPO. The IPO had opened for bidding on 21 June 2016 and closed on 23 June 2016.

The objects of the IPO were to achieve the benefits of listing the equity shares on the stock exchanges and to carry out the offer for sale. All proceeds from the offer has gone to the selling shareholders namely GAIL (India) 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).

Promoted by GAIL (India) and BG Asia Pacific Holdings Pte, Mahanagar Gas is one of the largest City Gas Distributors (CGD) in India and is the sole authorized distributor of CNG (compressed natural gas) and PNG (piped natural gas) to market of Mumbai, its adjoining areas and the Raigad district of Maharashtra.

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