Mahanagar Gas to raise around $130 mn via IPO: Sources

Mahanagar Gas Ltd, a natural gas distributor in India, is looking to raise around 8 billion Indian rupees…

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Mahanagar Gas Ltd, a natural gas distributor in India, is looking to raise around 8 billion Indian rupees ($129.66 million) in a stock market listing in the first quarter of 2015, three sources involved in the process told Reuters.

Mahanagar Gas, a joint venture between GAIL (India) Ltd  and U.K’s BG Group PLC, has hired Kotak Mahindra Capital and Citigroup to manage the initial public offering (IPO), the sources added.

The company is expected to file for the IPO with market regulator Securities and Exchange Board of India over the next month, the sources also said, declining to be identified because the information has not been made public.

Citigroup declined to comment, while Kotak did not reply to emails seeking comment.

“With reference to your query regarding company’s IPO plans, we would like to state that as and when we will plan (it), we will let you know,” Mahanagar Gas spokeswoman Neera Asthana-Phate told Reuters over email.

Mahanagar Gas is focused on Mumbai and its surrounding areas according to its website.

Among India’s listed gas distributors, Indraprastha Gas Ltd  is trading at 13.64 times 1-year forward earnings, while Gujarat Gas Co Ltd is trading at 22.7 times,  according to Thomson Reuters data.

The IPO comes amid an expected revival in listings in India this year as company executives and investors are becoming more confident about a recovery on the back of expected reforms by Prime Minister Narendra Modi’s government.

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