Mahanagar Gas files IPO papers with Sebi

Natural gas distribution company Mahanagar Gas Ltd (MGL) has filed draft papers with capital markets regulator Sebi to raise funds through an initial public offer (IPO).
GAIL and UK-based British Gas Asia Pacific Holdings Pte Ltd, which jointly owns the company, will offer 12,347,250 shares each at a face value of Rs 10 apiece, according to the draft filing.
MGL distributes gas to 0.82 million households and over 2,600 small commercial and 55 industrial establishments. The company also supplies CNG to vehicles in Mumbai, Thane, Mira-Bhayander, Navi Mumbai and beyond.
GAIL and British Gas Asia each hold 49.75 per cent in the company. The Maharashtra government also has a minor 0.49 stake in the firm.

"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.
"We believe that the listing of the equity shares will enhance our brand name and provide liquidity to the existing shareholders," the firm said in the draft paper.
Kotak Mahindra Capital and Citigroup have been appointed the merchant bankers for the IPO.
For the 2014-15 fiscal, the company had reported a profit of Rs 301 crore.