Mahanagar Gas pushes back IPO to Feb 2016
Shell’s proposal to buy the BG group has prompted Mahanagar Gas (MGL) to delay plans for a stock market launch to February 2016.
Jointly owned by BG and GAIL, MGL was originally planning the launch by April-May 2015 to raise Rs600cr ($90m) by off-loading 30-35%. But then in April Shell declared its intention to buy BG under a $70bn deal.
“We put the stock market launch on hold because of the deal,” says an MGL source. “But now BG has asked MGL not to delay it further.
” He adds Shell has agreed to the launch. GAIL, BG and MGL management had a video conference on September 2 and decided to go ahead.
Kotak Mahindra Capital and Citigroup were hired to manage the IPO in January 2015. MGL needs money to grow its pipeline network to serve newly developing residential and commercial areas at Bhiwandi, Shil Phata, Khidkali and Ambernath in Maharashtra with plans to lay two gas pipelines across the Ulhas River using Horizontal Directional Drilling (HDD).
One 2-km pipeline is proposed from the Balkum fire station in Thane to Kalyan Naka in Bhiwandi, along the old Agra road crossing the Ulhas River. The second 500-metre pipeline is proposed from MGL’s City Gate Station at Mahape to Manpada junction in Dombivali along the Kalyan-Shil Phata Road crossing the Ulhas River.
