FIs subscribe to IGL issue at Rs 48 a share

Financial institutions "" Life Insurance Corporation of India (LIC), General Insurance Corporation (GIC) and Unit Trust of India - have subscribed to Indraprastha Gas Ltd's public offer at Rs 48 per share, the ceiling price for the issue.

UTI at present holds 10 per cent in the company through India Infrastructure Fund (IIF). It hopes to keep its holding at more or less the same level even after the offer although as IIF is offloading 5.71 per cent through the offer.

Other UTI group funds have also applied for the IPO at the ceiling price as fresh investments to book profits.

The total holding of UTI group funds in IGL as a result is expected to remain a little less than 10 per cent after the IPO.

This will allow IIF to book profits on its holding, and allow other UTI group funds to book profits in the future from the market.

"Other UTI group funds have applied for shares of the company," explained officials from UTI.

"Since the issue was over subscribed the very first day, we have offered at the ceiling price and we expect to receive a fraction of the number of shares for which we have applied," explained a top executive incharge of investment at LIC.

Three entities in IGL offloaded portion of their stake through the offer.

The IL&FS Trust as the Indian Trustee for the AIG Sectoral Equity Fund and Infrastructure Development Finance Company along with IIF will be offloading around 28.57 per cent through the offer of their current combined holding of 50 per cent to the public through a 100 per cent book building route.

ILFS and IDFC, which held 20 per cent, after the offer will hold 8.57 per cent each and UTI's IIF will be holding 4.29 per cent.

GAIL and BPCL hold 22.5 per cent each, while government of NCT of Delhi holds around 5 per cent.