Mumbai, Jan. 14: Gujarat State Petronet Limited (GSPL), the second largest natural gas transmission network in the country, has fixed the price band for its forthcoming initial public offering (IPO) between Rs 23 and Rs 27 per share.
The issue will open on January 24 and will close on January 28.
GSPL, promoted by Gujarat State Petroleum Corporation, is entering the capital market with a public issue of 13.80 crore shares having a face value of Rs 10 each.
The share premium will be decided through a 100 per cent book-building process. At the upper end of the price band, the company aims to mobilise Rs 373 crore.
Of the total offer, up to 50 per cent is reserved for allotment to qualified institutional buyers (QIBs). Of the QIB portion, 5 per cent will be allotted to mutual funds. From the balance, 15 per cent will be allotted to non-institutional investors and the remaining 35 per cent will be available for retail investors.
The company currently has 433 km of pipeline network under operation from Hazira to Kalol.
The company is now planning to construct additional transmission pipeline network of 742 km by July 2007 with an investment of Rs 1,450 crore. A part of it will be funded through the proceeds of the IPO.
The other key shareholders of GSPL include Gujarat Maritime Board, Gujarat Urja Vikas Nigam., Gujarat State Electricity Company, Gujarat Narmada Valley Fertilizers Company and Gujarat Industrial Development Corporation. Among the private investors are India Development Fund, a unit scheme of IDFC Infrastructure Fund that is managed by IDFC Private Equity Company Ltd., Infrastructure Development Finance Company of India Ltd., Industrial Development Bank of India Ltd and UTI Bank.
GSPL has appointed Kotak Mahindra Capital Company Ltd., HSBC Securities & Capital Markets (India) Pvt. Ltd. and ICICI Securities Ltd as the book running lead managers to the issue.
