· Offer for Sale of up to 24,694,500 Equity Shares
· The minimum Bid lot is 35 Equity Shares and in multiples of 35 Equity Shares thereafter
· Bid / Offer opening date – June 21, 2016 and Bid / Offer closing date – June 23, 2016
Mumbai, June 14, 2016: Mahanagar Gas Limited (MGL), a company promoted by GAIL (India) Limited and BG Asia Pacific Holdings Pte Ltd, is the sole authorized distributor of compressed natural gas (“CNG”) and piped natural gas (“PNG”) in Mumbai and its Adjoining Areas and the Raigad district in the state of Maharashtra, India. MGL will launch its initial public offering (“IPO”), which opens on June 21, 2016 and closes on June 23, 2016, with a price band of Rs. 380 – Rs. 421 per Equity Share of face value of Rs. 10 each. The Anchor Investors shall bid one working day prior to the Bid/Offer Opening Date i.e. on June 20, 2016.
The offer consists of offer for sale of up to 12,347,250 Equity Shares by GAIL (India) Limited (“GAIL”) and up to 12,347,250 Equity Shares by BG Asia Pacific Holdings Pte Limited (“BGAPH”) (together “Selling Shareholders”) (“Offer”).
The Offer includes a reservation of up to 200,000 Equity Shares for subscription by eligible employees on a competitive basis.This Offer is being made through the Book Building Process where 50% of the Offer, less the employee reservation portion, (“Net Offer”) shall be available for allocation on a proportionate basis to Qualified Institutional Buyers (“QIBs”) (“QIB Portion”). MGL and the Selling Shareholders may, in consultation with the Book Running Lead Managers, allocate up to 60% of the QIB Portion to Anchor Investors, on a discretionary basis, (“Anchor Investor Portion”) at the Anchor Investor Allocation Price, in accordance with the SEBI ICDR Regulations, out of which at least one third will be available for allocation to domestic Mutual Funds only subject to valid Bids received from domestic Mutual Funds at or above the Anchor Investor Allocation Price.
In event of under-subscription, or non-allocation in the Anchor Investor Portion, the balance Equity Shares shall be added to the QIB Portion. Equity Shares representing 5% of the QIB Portion (excluding the Anchor Investor Portion) shall be available for allocation on a proportionate basis to Mutual Funds only. The remainder of the QIB Portion shall be available for allocation on a proportionate basis to QIBs (other than Anchor Investors), including Mutual Funds, subject to valid Bids being received from them at or above the Offer Price. Further, not less than 15% of the Net Offer shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Net Offer shall be available for allocation to Retail Individual Bidders, subject to valid Bids being received from them at or above the Offer Price. All Investors, other than Anchor Investors, shall participate in the Offer mandatorily through the Application Supported by Blocked Amount (“ASBA”) process by providing the details of their respective ASBA Account, which will be blocked by Self Certified Syndicate Banks (“SCSBs”), to participate in this Offer.
Kotak Mahindra Capital Company Limited and Citigroup Global MarketsIndia Private Limited are the Book Running Lead Managers (“BRLMs”) to the Offer. The Registrar to the Offeris Link Intime India Private Limited.
The Offer and the Net Offer will constitute 25.00% and 24.80%, of the post-offer paid-up equity share capital of our Company, respectively.