Indraprastha Gas lists on stock exchanges of Bombay, National

Our Markets Bureau
26 December 2003

Mumbai: Indraprastha Gas Ltd's (IGL) share opened for trading today at Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

The listing ceremony was held at the BSE, where A K De, managing director, IGL, rang the ceremonial gong to commemorate the listing of the IGL scrip and commencement of trading for the day. At the BSE, the IGL share will be traded under the B1 group. The trading symbol for the scrip will be IGL, both at the NSE and the BSE.

A public offer of equity shares was made through offer for sale of 40,000,000 equity shares of Rs 10 at a price of Rs 48 per equity share for cash aggregating Rs 192 crore. The offer was open for subscription between 28 November and 5 December 2003 and received an overwhelming response. The company received 514,893 bids for 1,40,80,82,000 equity shares at the offer price (Rs 48) resulting in 35.38 times subscription.

This offer was made through a 100-per cent book-building process wherein 50 per cent of the offer was allotted on a discretionary basis to qualified institutional buyers (QIBs). Further, 25 per cent of the offer was allotted on a proportionate basis to non-institutional bidders and 25 per cent of the offer was allotted on a proportionate basis to retail individual bidders. Three lakh equity shares were reserved for allotment to permanent employees of the company.

Says De: "This is a historic occasion for IGL and we are aware of the responsibility of honouring the confidence that the IPO [initial public offering] subscribers have reposed in us. At this milestone moment, we at IGL rededicate ourselves to the pursuit of the highest standards of corporate governance and enhancement of shareholder value."

The three selling shareholders, namely IL&FS Trust Company (in its capacity as trustee for AIG Indian Sectoral Equity Trust), Infrastructure Development Finance Company (IDFC) and Unit Trust of India (UTI) sold 28.57 per cent of IGL's paid-up equity capital through this offering. The book running lead managers for the IPO were JM Morgan Stanley, Enam Financial Consultants and Kotak Investment Banking.