Natural gas distribution company Mahanagar Gas (MGL) has filed Draft Red Herring Prospectus (DRHP) with capital markets regulator Securities Exchange Board of India (SEBI) to raise funds through an initial public offer (IPO).
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. Kotak Mahindra Capital and Citigroup have been appointed the merchant bankers for the IPO.
GAIL and UK-based British Gas Asia Pacific Holdings, which jointly owns the company, will offer 12,347,250 shares each at a face value of Rs 10 apiece. 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.
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.
