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Mahanagar Gas Promoter Looking To Sell Up To 12.5% Stake

Floor price of the issue has been set at Rs 905. 



A man gestures as taxis line up at a Mahanagar Gas Ltd. gas station in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)
A man gestures as taxis line up at a Mahanagar Gas Ltd. gas station in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

BG Asia Pacific Holdings Pte Ltd., promoter of Mumbai-based auto and kitchen fuel distributor Mahanagar Gas Ltd., is looking to sell up to 12.5 percent stake in the company.

The promoter will sell up to 74 lakh shares or 7.5 percent stake for Rs 669.7 crore, with an option to raise it to 1.23 crore shares, bankers familiar with the matter told BloombergQuint. If the greenshoe option is exercised, the total deal size would be Rs 1,113 crore.

The floor price for the issue has been set at Rs 905 per share, a 4.2 percent discount to the current market price, the bankers said.

Following the stake sale, the promoter holding in the company would come down to 52.5 percent.

Kotak Mahindra Capital Company Ltd. and Citigroup Global Markets India Ltd., who were the lead bankers to MGL’s public offer, are also running this issue.

Mahanagar Gas Ltd. was listed on the exchanges in 2016. It is a joint venture between GAIL India Ltd. and BG Asia Pacific Holdings Singapore. The latter is a subsidiary of BG PLC UK, which is part of the Royal Dutch Shell Group. MGL is the sole authorised distributor of compressed natural gas for vehicles and piped natural gas for households.