Mahanagar Gas Ltd (MGL), India's second biggest CNG retailer, today fixed the price band of Rs 380-421 for its initial public offer (IPO) to raise around Rs 1,040 crore.
The company, promoted by GAIL and BG Asia Pacific Holdings Pte Ltd, is making an offer for sale of up to 24,694,500 equity shares of Rs 10 each.
The Mumbai-based gas distributor has proposed sale of up to 12,347,250 equity shares by Maharatna public sector undertaking GAIL and up to 12,347,250 equity shares by BG Asia Pacific.
The money raised through the IPO would accrue to the promoters who are selling their stake. The IPO will open on June 21 and close on June 23.
The IPO is being managed by Kotak Investment Bank and Citigroup.
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.
"We plan to increase penetration in Mumbai and its adjoining areas by reaching out to new customers for CNG, domestic PNG, commercial PNG and industry PNG use. We are also expanding our pipeline network and adding more CNG stations.
We have a supply network of over 4,600 kms pipelines," MGL Managing Director Rajeev Mathur told reporters here.
The company is now looking at rolling out similar facilities to distribute CNG and PNG in Raigad and other cities across the country, Mathur said.
MGL has recently been awarded licence for Raigad district in the fourth round of bidding. The Petroleum and Natural Gas Regulatory Board has identified several new areas for future bidding, for which MGL would bid in subsequent rounds, he said.
Mathur said in the last decade, the demand for natural gas has gone up due to increased availability, development of natural gas transmission and distribution infrastructure and environment-friendly characterristics of natural gas.
The government is also encouraging use of green fuel.
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