Mahanagar Gas looks to raise more than 10 billion rupees through IPO

By Promit Mukherjee

MUMBAI (Reuters) - Mumbai-based cooking gas supplier Mahanagar Gas Ltd plans to raise a maximum of 10.40 billion rupees ($154.65 million) through an initial pubic offering (IPO) on June 21, the company said on Tuesday.

The price band for the IPO is 380 rupees per share to 420 rupees per share. At the lower end of the price band, the company could raise up to 93.80 billion rupees, a company statement showed.

Mahanagar Gas is a joint venture of Indian gas transmission behemoth Gail (India) Ltd and BG Asia, which is now owned by Royal Dutch Shell .

The western Maharashtra state government also holds 10 percent stake in the company.

According to its IPO prospectus, the company will not issue any additional shares and proceeds from the IPO will directly go to the two holding companies that will be offloading 12.5 percent stake each.

Mahanagar Gas is currently engaged in supplying cooking gas and compressed natural gas (CNG) for vehicles in Mumbai. The company also operates in the adjoining Thane district and recently bagged a licence to supply city gas to the coastal district of Raigad.

It also supplies natural gas to industries and commercial establishments such as hotels and shopping malls.

($1 = 67.2475 Indian rupees)

(Reporting by Promit Mukherjee; Editing by Biju Dwarakanath)