Mahanagar Gas Ltd, the Mumbai-focused city gas distribution company, has filed its draft herring prospectus with the capital markets regulator Securities and Exchange Board of India (SEBI) for its initial public offering.
The company is owned by GAIL (India) Ltd and BG Asia Pacific Holdings Pte Ltd (BG Asia), an arm of the UK-based BG Group, each of which will be selling12,347,250 equity shares at a face value of Rs10 apiece, it said in the DRHP.
GAIL and BG Asia each hold 49.75 per cent of equity shares. The Maharashtra government also has a minor 0.49 stake in the firm.
Here's a snapshot of the IPO:
*The IPO would comprise up to 12,347,250 shares by state-run GAIL and up to 12,347,250 shares by UK-based BG Asia on offer.
* Bankers: Kotak Mahindra Capital and Citigroup are managing the IPO.
Use of proceeds
* Since the entire issue comprises an offer-for-sale, the company would not receive any money and the entire amount will go to the selling shareholders.
* Mahanagar Gas distributes compressed natural gas (CNG) for use in motor vehicles and piped natural gas (PNG) for domestic household use as well as for commercial and industrial use.
* With more than 20 years of experience in supplying natural gas in Mumbai, it is presently the sole authorised distributor of CNG and PNG in Mumbai, its adjoining areas and the Raigad district in Maharashtra.
* In terms of revenues and profits, Mahanagar Gas is the
third-biggest city gas distribution company in India after Ahmedabad-based Gujarat Gas Ltd and New Delhi-based Indraprastha Gas Ltd.
* As on 30 June, the company supplied CNG to more than 430,000 vehicles through a network of 180 CNG filling stations, and provided PNG connections to close to 820,000 households as well as more than 2,600 commercial and 55 industrial consumers in Mumbai and adjoining areas, according to the company’s business information in the DRHP.
* For 2014-2015, it clocked revenues of Rs 2,094.9 crore compared with Rs 1,885.1 crore in the previous financial year. It reported a profit of Rs 301 crore for the year against a profit of Rs 297.2 crore in the year-ago period.
In 2014-15, its CNG and PNG businesses accounted for 74.09 per cent and 25.91 per cent, respectively, of the total volume of natural gas sold, and 65.10 per cent and 34.9 per cent, respectively, of its total gas sales revenue.