Mahanagar Gas makes stellar market debut

GAS distributor Mahanagar Gas made a strong debut on the bourses on Friday, ending the session at R519.90 apiece, up nearly 24% over the issue price of R421 after listing at R540, a premium of over 28% premium to the issue price, reports fe Bureau in Mumbai. Post listing, the company now commands a market capitalisation of R5,135 crore. The initial public offering, in the price band of R380-421 per share, was oversubscribed 65 times.

Mumbai, July 1: Gas distributor Mahanagar Gas made a strong debut on the bourses on Friday. The stock ended the session at Rs 519.90 apiece, up nearly 24% over the issue price of Rs 421 after listing at Rs 540, a premium of over 28% to the issue price.

Post listing, the stock now commands market capitalisation of Rs 5,135 crore.

The initial public offering (IPO), in the price band of Rs 380-Rs 421 per share, was oversubscribed 65 times with bids coming in for 111.7 crore shares against 1.73 crore shares on offer.

Before the Mahanagar Gas issue, 10 companies, including Thyrocare Technologies, Parag Milk Foods and Equitas Holdings, have raised close to Rs 6,744 crore via IPOs in 2016. Last year, 21 companies took the IPO route to raise Rs 13,614 crore, according to Prime Database.

Mahanagar Gas is the largest distributor of piped natural gas (PNG) and compressed natural gas (CNG) in Mumbai, its adjoining areas and Raigad district in Maharashtra. The company is promoted by GAIL India and BG Asia Pacific Holdings (a part of Royal Dutch Shell). Shares of GAIL India closed up 2.61% at Rs 395.25 on Friday on the BSE.

In FY16, the company reported total revenues of Rs 2,121crore,flatcomparedwith Rs 2,135 crore in FY15. Profits rose by 2.5% to Rs 308 crore from Rs 301 crore in FY15.

L&T Infotech — a subsidiary of Larsen and Toubro — will launch its initial public offering (IPO) on July 11. As per a stock exchange filing, the company will offer 1.75 crore shares for public subscription at a price band of Rs 705-710.

At the upper price band, the company will raise Rs 1,242.5 crore through the share sale.