The initial public offer (IPO) of city gas distribution firm Mahanagar Gas received bids for a total of 5.94 crore shares on the second day of bidding for the IPO today, 22 June 2016, as per data from the National Stock Exchange (NSE) website at 16:00 IST. The IPO was subscribed 3.43 times.

Mahanagar Gas has raised Rs 309.35 crore by selling 73.48 lakh shares to a total of 25 anchor investors ahead of the opening of the company's initial public offer (IPO). The shares were allotted to the anchor investors at Rs 421 per share, the top end of the Rs 380 to Rs 421 per share price band for the IPO.

Anchor investors allotted shares of Mahanagar Gas include Abu Dhabi Investment Authority, First State Investments (Hong Kong), Amundi Funds Equity India, Morgan Stanley Mauritius Company, Merrill Lynch Capital Markets Espana S.A. S.V., DB International Asia, BNP Paribas Arbitrage, Franklin Templeton Asset Management (India), Reliance Capital Trustee Co, National Westminster Bank Plc, SBI Life Insurance Co, and ICICI Prudential AMC among others.

The IPO of Mahanagar Gas comprises of issue of 2.46 crore shares through a 100% book building process. The IPO opened for bidding yesterday, 21 June 2016. The IPO closes on 23 June 2016. The price band for the issue has been fixed at Rs 380 to Rs 421. The IPO includes offer for sale of upto 1.23 crore shares by GAIL (India) and upto 1.23 crore shares by BG Asia Pacific Holdings PTE Ltd (BGAPH). The offer will constitute 25% of the post offer paid up equity capital of the company.

The objects of the IPO are to achieve the benefits of listing the equity shares on the stock exchanges and to carry out the offer for sale. The company will not receive any proceeds from the offer and all proceeds from the offer shall go to the selling shareholders namely GAIL (India) and BGAPH. The company is promoted by GAIL (India) and BGAPH, each of who holds 45% of the company's equity shares.

Mahanagar Gas' net profit rose 2.55% to Rs 308.68 crore on 0.65% decline in revenue to Rs 2121.62 crore in the year ended 31 March 2016 (FY 2016) over the year ended 31 March 2015 (FY 2015).

Promoted by GAIL (India) and BG Asia Pacific Holdings Pte, Mahanagar Gas is one of the largest City Gas Distributors (CGD) in India and is the sole authorized distributor of CNG (compressed natural gas) and PNG (piped natural gas) to market of Mumbai, its adjoining areas and the Raigad district of Maharashtra.