The initial public offering (IPO) of Mahanagar Gas, which opened on Tuesday, was fully subscribed on the first day, as investors bid for the issue 1.09 times or 1.9 crore shares of the total 1.73 crore shares on offer. The IPO is a complete offer\u00a0for sale (OFS) of `1,039 crore by\u00a0existing promoters including\u00a0state-run GAIL India and BG Asia Pacific Holdings (a part of Royal Dutch Shell). The portion of qualified institutional buyers (QIBs) was subscribed 1.8 times as they bid for 89 lakh shares of the 48.9 lakh shares on offer for them. High net-worth individuals on the other hand bid for 8.3 lakh shares of the 36.7 lakh shares reserved for them, bidding 0.22 times. Retail investors bid for nearly 108% of their quota or 93 lakh shares of the 85 lakh shares reserved. Employees, who were offered a discount of `38 per share on the upper end of the price band, bid for 3,430 shares of the 2 lakh shares reserved for them. The price band for the issue is `380-421 per share and the issue will close on June 23. Given its FY16 earnings, the company is commanding an earnings multiple of 10.9 and 12.1 times for the upper and lower price range. On Monday, the company allotted 7.34 million shares, aggregating to `309.3 crore to its anchor investors, including BNP Paribas, Morgan Stanley, DB International Asia, Abu Dhabi Investment Authority-Merrill Lynch Capital Market, SBI Life Insurance Company and Kotak Mutual Fund. In FY16, the company reported a total revenue of `2121 crore, lower 0.6% than `2135 crore reported in FY15. However, the company saw a 2.5% increase in its profit after tax at `308 crore in FY16 compared to `301 crore reported in FY15. The promoters of the company hold 49.5% each of the total equity share capital which will be brought down to 32.5% each post completion of the issue. The company is the largest distributor of piped natural gas (PNG) and compressed natural gas (CNG) in Mumbai, its adjoining areas and Raigad district in Maharashtra. Kotak Mahindra Capital Company and Citigroup Global Markets India are the book running lead managers to the issue.