There was good news for the Maharashtra government after the share price of Mahanagar Gas Limited shot to Rs 540 on its trading debut on Friday.
There was good news for the Maharashtra government after the share price of Mahanagar Gas Limited shot to Rs 540 on its trading debut on Friday. Secretary of industries department Apoorva Chandra said the state government had increased its stakes in the company from 0.3 per cent to 10 per cent in December 2014. The state’s investment of Rs 10 crore is now valued at Rs 540 crore, Mr Chandra said.
“The MGL was basically a collaboration between Gas Authority of India Limited and British Petroleum. The state had only 0.2-0.3 per cent stake in it. In December 2014, we acquired 10 per cent shares in the company at Rs 10 per share. The government invested Rs 10 crore to buy 10 per cent shares. MGL was listed on the Bombay Stock Exchange at Rs 540 Friday morning. That means the value of the state’s investment of Rs 10 crore became Rs 540 crore as MGL got listed,” Mr Chandra said.
The initial public offer (IPO) from Mahanagar Gas Ltd made a spectacular debut on the domestic stock exchanges on Friday listing at a premium of 28.26 per cent to its issue price of Rs 421 per share. The shares got listed at Rs 540 on the Bombay Stock Exchange (BSE) and surged further to touch an intra-day high of 549.15 before closing the day at 519.90, up 23.49 per cent or Rs 98.90 from its issue price of Rs 421 per share. About 38.11 lakh shares changed hands on BSE clocking a turnover of Rs 202.7 crore on Friday. The Rs 1,039.64-crore IPO from Mahanagar Gas had witnessed an overwhelming response from investors. The offer was oversubscribed 64.54 times as it received bids for 111.95 crore shares as against the issue size of 1.73 crore shares.
The portion reserved for high net-worth investors (HNI) was subscribed 191 times while the portion reserved for institutional investors and retail investors were subscribed 72.84 times and 6.82 times respectively.
“We had expected that MGL IPO would get a good response. But Rs 540 share price was beyond our expectation. We expected it to be at around Rs 300,” Mr Chandra said.
