The initial share sale of country's second largest CNG retailer Mahanagar Gas continued to witness strong investor response with the issue getting oversubscribed 3.92 times on the second day of the three-day offering. The Rs 1,040 crore-IPO received bids for 6,80,27,645 shares against the total issue size of 1,73,46,150 shares, data available with the stock exchanges till 1700 hrs showed. The category set aside for qualified institutional buyers (QIBs) was oversubscribed 6.44 times, while that of non institutional investors 2.39 times. Retail investors segment received 3.23 times subscription. The company's IPO was fully covered on the first day itself. Mahanagar Gas has mopped up Rs 309 crore from anchor investors. The price band for the IPO has been fixed at Rs 380-421. Mahanagar Gas, promoted by state-run GAIL and British Gas Asia Pacific Holdings, is making an offer for sale of up to 24,694,500 equity shares of Rs 10 each. British Gas and GAIL would sell up to 12,347,250 equity shares each in the IPO. The initial share sale programme will close tomorrow. At the upper end of the price-band, the firm will garner Rs 1,039.64 crore. The money raised through the IPO would accrue to the promoters who are selling their stake. The IPO is being managed by Kotak Mahindra Capital Company Ltd and Citigroup Global Markets India Pvt Ltd. Mahanagar Gas, a major distributor of compressed natural gas (CNG) and piped natural gas (PNG) in Mumbai and adjoining areas, receives gas at its stations located at Wadala, Mahape, Ambernath and Taloja through pipelines owned by GAIL.