Mahanagar Gas raises Rs 309 crore from anchor investors ahead of IPO

MUMBAI: Mahanagar Gas has raised Rs 309 crore by issuing 73.4 lakh shares to 25 anchor investors on Monday. The gas distribution firm allotted shares at Rs 421 apiece ahead of its initial public offering (IPO), which will remain open for subscription between June 21 – June 23.

Some of the major anchor investors includes BNP Paribas, Morgan Stanley, DB International Asia Limited, Abu Dhabi Investment Authority, Merrill Lynch Capital Market, DSP BlackRock, SBI Life Insurance Company, ICICI Prudential MF, Kotak MF, Birla Sun Life MF, Franklin Templeton Investment Funds, UTI, Sundaram Mutual Fund and others.

The company is planning to raise Rs 1,040-crore from its IPO which is priced at Rs 380-421 per share.

The IPO will comprise offer for sale (OFS) worth Rs 520 crore each from GAIL (India) and UK's BG Group. Mahanagar Gas, country's leading natural gas distribution company, is a joint venture between Gail and BG group.

Almost all the domestic brokerages have recommended to subscribe the issue which is according to broking houses, is attractively priced compared to its peers.