Gail Kicks Off 21-City Marketing Blitz
GAIL has kicked off a 21-city marketing blitz that will stretch from Sydney to Minneapolis to sell its $800-million mega issue to investors around the globe. The 10-day, 21-city marathon will be the biggest marketing exercise ever attempted by an Indian company ahead of a GDR issue.
In the US, a GAIL team will set the ball rolling with meetings in New York. Company executives will zig-zag their way across the continent, meeting fund managers in cities like San Francisco, Denver and Minneapolis. A second team will start out in Hong Kong on Wednesday and then fly to Singapore.
GAIL executives will also race across Europe, meeting fund managers in Geneva, Paris and Edinburgh. The three GAIL teams will converge on London on October 31. Pricing is likely to be around November 5.
The GAIL issue is being lead managed by BZW, Jardine Fleming and Morgan Stanley. The three believe the mega-marketing issue is essential.
The lead managers are reportedly optimistic. Says a banker, It should become a core holding in most portfolios, another banker said, it is a monopoly and it is easy to understand, said one.
The $800 million GAIL issue is by far the biggest ever by an Indian company. The biggest before this was the $400 million VSNL issue in March this year.
GAIL will be the second blockbuster Indian issue this year. MTNL will also be another giant-sized GDR issue. The government is also finalising the lead manager for Container Corporation which is scheduled to take place soon.