Mumbai: Shares of the country’s second-largest CNG retailer Mahanagar Gas today made a strong debut at the bourses, surging over 28 per cent, against the issue price of Rs 421.
The stock opened at Rs 540, a huge premium of 28.26 per cent, compared with the issue price on BSE. It later touched a high of Rs 549.15, up 30.43 per cent.
At NSE, the company listed at Rs 540. The initial share sale of Mahanagar Gas was oversubscribed a whopping 64.54 times last week. The price band for the IPO was fixed at Rs 380-421. Mahanagar Gas, promoted by state-run GAIL and British Gas Asia Pacific Holdings, made an offer for sale of up to 24,694,500 equity shares of Rs 10 each.
The money raised through the IPO would accrue to the promoters who are selling their stake. Mahanagar Gas, a major distributor of compressed natural gas (CNG) and piped natural gas (PNG) in Mumbai and adjoining areas, receives gas at its stations located at Wadala, Mahape, Ambernath and Taloja in and around Mumbai through pipelines owned by GAIL. The company’s IPO hit the market after a gap of more than a month after Parag Milk Foods’ offer in early May.
