India’s second biggest CNG retailer, Mahanagar Gas Ltd (MGL) is set to hit the capital markets on Tuesday to raise around Rs 1,040 crore through an initial public offer.
MGL, a major distributor of compressed natural gas (CNG) and piped natural gas (PNG) in Mumbai and adjoining areas, receives gas at its stations located at Wadala, Mahape, Ambernath and Taloja through pipelines owned by GAIL.
The company, promoted by state-run GAIL and British Gas Asia Pacific Holdings Pte Ltd, is making an offer for sale of up to 24,694,500 equity shares of Rs 10 each.
The initial share-sale programme will open tomorrow and close on June 23. At the upper end of the price-band, the firm will garner Rs 1,039.64 crore.
The money raised through the IPO would accrue to the promoters who are selling their stake.
British Gas and GAIL will sell up to 12,347,250 equity shares each in the IPO.
The gas distributor firm has fixed the price band of Rs 380-421 for its initial public offer.