Stock market IPO as MNGL prepares to go public
After IRM Energy, Maharashtra Natural Gas (MNGL) has become the latest CGD retailer to plan a stock market launch.
As a first step, GAIL and Bharat Petroleum joint venture MNGL wants to appoint a consultant to draft a Request for Quotation (RFQ) to select merchant bankers, Book-Running Lead Managers (BRLMs - responsible for managing the launch), and legal counsel. On October 9 (2024), MNGL published a 64-page tender with an October 16 (2024) bid deadline.
Whoever wins must design and draft the RFQ after an initial meeting with MNGL management and stakeholders to understand the company's vision and objectives. MNGL will use money raised to fund the development of new areas won in CGD-IX and CGD-XI in Maharashtra, Karnataka and Telangana.
Contacted by this report, an MNGL source says it is "too early to talk about the size of the IPO." However, city gas retailers describe MNGL's move as a "step in the right direction."
A leading Ahmedabad-based city gas retailer said: "All major gas retailers are listed on the exchanges." Indraprastha Gas, Mahanagar Gas, Gujarat Gas, and Adani-Total Gas are all listed.
In 2023, newcomer IRM also went public. "Even Torrent Gas is actively thinking of an IPO," we hear.
In October 2020, Torrent Gas director Jinal Mehta revealed his plans to list Torrent Gas by 2023-24 to The Economic Times. GAIL is also planning a stock market listing of its city gas arm, GAIL Gas.
"Gas retailers understand the benefits of a listing," we hear. Two significant players, however, IndianOil-Adani Gas (IOAGPL) and AGP CGD India (AG&P Pratham), have not yet been listed on any exchange.
"Both IOAGPL and AGP have powerful parents backing them," says a market analyst. AGP has parent AG&P and investors Osaka Gas, Japan Overseas Infrastructure Investment Corporation for Transport and Urban Development and US-based I Squared Capital.
MNGL has been planning a stock market launch but was waiting for the right moment. "MNGL has achieved record revenues for 2023-24," we hear.
"Perhaps this triggered the move," we hear.