Moderate response to Petronet-LNG float on stock exchange

Vol 7, PW 25 (10 Mar 04) News in Brief

Petronet-LNGs maiden offer to issue 26.1cr shares to investors has met with a lukewarm response.

Theres no clarity on the companys revenue model, an analyst tells PETROWATCH. And Petronet is not ready to disclose its rate of return.

The issue opened on 1st March and closed on 9th March. On 9th March, the companys shares were oversubscribed by 2.42 times (5.30pm IST) as against ONGCs offer which was oversubscribed within the first 10 minutes of its opening on the first day, and GAILs offer which was also hugely oversubscribed.

Analysts say investors have preferred the Power Trading Corporation to Petronet-LNG. Both issues hit the market on the same day.

Yet Petronet-LNG remains optimistic. We are the only company which has a 25-year outlook for fixed revenue, argues a Petronet-LNG director What more can anybody else ask for