Mahanagar Gas shares witnessed a rally of 23.6 percent to close at Rs. 520.30 on the NSE on Friday, driven by value buying and positive market sentiment.
According to the market analysts, the valuations of the stock are cheap as compared to the listed peers like Indraprastha Gas, which was the reason for huge buying in the stock.
The company could see a volume growth of five to six percent and top-line growth of around six to eight percent in a couple of years.
The stock opened at Rs. 540 against issue price of Rs. 421 and touched an intraday high of Rs. 548.95 and low of Rs. 518 on Friday.
The country's second largest CNG retailer had raised Rs. 1,040 crore through its IPO that opened for subscription between June 21st to 23rd.
Mahanagar Gas is promoted by state-run GAIL and British Gas Asia Pacific Holdings.
The company has exclusive gas distribution rights in Mumbai till 2020, adjoining areas of Thane and Navi Mumbai till 2030 and Raigad district till 2040.
The company supplied piped natural gas (PNG) to nine lakh domestic customers, 2866 commercial and 60 industrial customers in FY16, through an integrated pipeline network of over 4686 km that includes 415 km of steel and 4231 of polyethylene pipeline.
