Mahanagar Gas public issue fully subscribed on first day

Mumbai, June 21 (IANS) State-run Mahanagar Gas Ltd’s public offer was fully subscribed on the first day on Tuesday, with the bulk of the bids coming from the qualified institutional investors (QIB).

GAIL India and British Gas Asia Pacific Holdings (BGAPH)-promoted Mahanagar Gas IPO for 17.1 million shares garnered bids for 18.8 million shares, and was thus oversubscribed by 1.1 times.

The QIB portion was subscribed nearly two times, high net worth individual (HNI) segment was subscribed 20 per cent and retail portion was subscribed a little over one time.

Not more than 50 per cent of the issue will be allotted to OIBs. Besides, at most 15 per cent of the issue will be available for non-institutional bidders, and the remaining 35 per cent for retail investors.

The issue size is expected to be around Rs 1,040 crore. However, since no new shares are being issued, Mahanagar Gas will not receive any funds from the offer, and all proceeds from the issue will go to the promoters.

The IPO is priced in a band of Rs 380 and Rs 421 and will remain open till Thursday

On Monday, Mahanagar Gas raised Rs 309 crore from more than 20 anchor investors.

The company has allotted over 73.48 lakh shares to anchor investors, including BNP Paribas, Morgan Stanley, Abu Dhabi Investment Authority, Merrill Lynch Capital Market, DSP BlackRock and SBI Life Insurance Company.

–IANS

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