GAIL (India) Ltd. has granted in-principle approval for the proposed listing of its wholly owned subsidiary, GAIL Gas Ltd., through an initial public offering. Under the proposal, GAIL plans to dilute up to 25% of its equity holding in the subsidiary through the IPO route.
GAIL Gas operates in the city gas distribution business, supplying natural gas to domestic, commercial and industrial consumers and providing compressed natural gas (CNG) for vehicles. The proposed listing is expected to provide the subsidiary with independent access to the capital markets.
The IPO is still in the preparatory stage. The final issue size, valuation, price band and launch schedule will be determined after further recommendations from the appointed book-running lead managers and subsequent approval from GAIL’s board.
