Gas distribution company Mahanagar Gas Ltd has received capital markets regulator Sebi's approval to float an initial public offering.
The company, which had filed its draft red herring prospectus (DRHP) with Sebi in November seeking permission to launch IPO, obtained clearance from the regulator on January 15, as per the latest update.
Mahanagar Gas' IPO would be of up to 24,694,500 equity shares. This included an offer for sale of up to 12,347,250 shares by state-run GAIL and of up to 12,347,250 shares by UK-based British Gas Asia Pacific Holdings Pte Ltd.
The offer would also include a reservation for eligible employees.
GAIL and British Gas Asia each hold 49.75 per cent in the company. The Maharashtra government also has a minor 0.49 stake in the firm.
Mahanagar Gas distributes gas to 0.82 million households and over 2,600 small commercial and 55 industrial establishments. The company also supplies CNG to vehicles in Mumbai, Thane, Mira-Bhayander, Navi Mumbai and beyond.
"The objects of the offer are to achieve the benefits of listing the equity shares on the stock exchanges and to carry out the offer for sale," the company had said.
The firm believes that the listing of the equity shares will enhance its brand name and provide liquidity to the existing shareholders.
The issue is being managed by Kotak Mahindra Capital and Citigroup. The shares are proposed to be listed on BSE and NSE.
