GAIL files Red Herring prospectus with Sebi

Public sector GAIL India Ltd filed a draft Red Herring propectus with the Securities and Exchange Board of India (Sebi) in connection with the proposed public issue aimed at offloading government's 10 per cent holding.

GAIL chairman-cum-managing director Proshanto Banerjee told Business Standard that the prospectus was filed with the market regulator. He said that 84,565,160 equity share would be sold through book building route.

Close to five per cent of these shares would be proposed to be reserved for the company's employees. As per Sebi provisions, 25 per cent shares will be reserved for retail investors.

The issue will hit the market on February 23, and will remain open for bidding in a price band. The price band will be decided a day before the issue opens, Banerjee said.

The issue, alongwith a bigger issue from ONGC, is aimed at offloading government holding in these firms.