Mahanagar gas to debut on stock exchanges on 1/07/16 (Friday). Making a guess on the expected listing price is a hazardous job. The price entirely depends on appetite of buyers in the initial day as selling pressures are large. From fundamentals MGL deserves a conservative price of Rs. 500/- at the time of issue. Adding 5-6% for subsequent upswing in IGL and good sentiment in market Rs. 525 plus minus Rs. 15 seems reachable. Rs. 550/- levels also cannot be rules out in due course. The stock is fundamentally strong and may show slow and steady appreciation over 2-3 year time frame.Detailed analysis of Mahanagar gas IPO was earlier given at http://ipoandmore.com/2016/06/14/mahanagar-gas-reasonably-priced-good-prospects Price Movement of IGL in last one month.
The scrip has gained 8-9% in last one month and about 5-6% after firm date for MGL IPO. FII holding in IGL stands were 20.81 indicating good interest in this sector.
|Comparative Ratios : Mahanagar Gas vs Indraprastha Gas|
|IGL||MGL (Issue price Rs. 421)||MGL (Random price Rs. 550)|
|Sales volume in mmscd||2.3||4.1|
|EBIDTA per SCM||23.4||25.2|
|Net Profit Margin (%)||12.15||14.5||14.5|
|Dividend||Rs. 6||Rs. 17.5 in 2015|
Anchor Investors ( 20th June 1016) : Mahanagar Gas raised Rs 309 crore from about two dozen anchor investors. It allotted 7.34 million shares at Rs 421 to investors which included DB International, Morgan Stanley and Merrill Lynch.