IGL shares rise 150% on debut

The Indraprastha Gas (IGL) stock made a sparkling debut, sending the investment banking world into raptures.

The IGL stock, sold at Rs 48 per share, opened at the bourses at Rs 92, giving allottees almost a 100 per cent gain at the opening bell.

The stock went on to hit an intra-day high of Rs 125, but closed at Rs 119.20 on the Bombay Stock Exchange (BSE), a neat 150 per cent premium over its issue price. However, the National Stock Exchange website quoted the stocks' intra-day high price at Rs 199.70.

The IGL IPO was oversubscribed about 30 times and in the kerb markets, the stock was quoting between Rs 70-80 before listing. IGL is promoted by two energy sector enterprises "� Gail (India) Limited and Bharat Petroleum Corporation Limited.

More than 98.01 lakh shares were traded on the counter on the BSE and close to 1.98 crore shares on the NSE.

The markets see in the stock's strong performance on debut and volumes of trades, a sure sign that the IPO market is gaining strength.

Anup Bagachi, managing director and CEO, ICICI Direct said, "The IGL performance shows that there is a good appetite for quality IPOs."

The response garnered by IGL on listing has taken the market by surprise, even though it was already expecting a solid debut.

IGL made the public issue of 40 million shares in order to provide an exit route to existing shareholders, namely the IL&FS Trust, Infrastructure Development Finance Company and UTI-Infrastructure Fund Unit scheme.

IGL, a gas distribution company, draws upon the distribution skills of Gail and the retail marketing experience of BPCL in its operations. GAIL and BPCL, each hold a 22.5 per cent stake in the company.

The Delhi government holds a 5 per cent stake. Together, the three hold a 50 per cent stake in the company, post-IPO.