GAIL Gas Begins IPO Process For ₹3,100 Crore Issue As Merchant Banker Bids Expected In October
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GAIL Gas has begun preparations for its ₹3,100 crore IPO by inviting merchant banker bids, with the selection process set to advance in October as the company moves towards a potential listing.
Gas distribution company GAIL Gas has moved a step closer to its proposed ₹3,100 crore initial public offering (IPO), inviting bids from merchant bankers as it prepares to tap the capital markets.
The wholly owned subsidiary of state-run GAIL (India) is looking to appoint up to four book-running lead managers for the proposed issue. The bidding process is expected to take place in October, marking a key step towards a potential listing of the city gas distribution business.
The proposed share sale is part of the government's broader asset monetisation programme and comes as GAIL looks to unlock value from its subsidiaries.
GAIL Gas seeks merchant bankers for proposed issue
GAIL Gas has initiated the process to select investment banks that will advise it on the public offering. The appointed bankers will handle key parts of the transaction, including preparation of the offer documents, regulatory filings and coordination with stock exchanges and other intermediaries.
A pre-bid meeting for prospective bidders is scheduled for September 23, while bids can be submitted from September 24. The deadline for submission is October 12 and the bids are scheduled to open on October 13.
The proposed issue could raise up to ₹3,100 crore, although the final size, structure and other terms will be determined as the transaction progresses and remains subject to regulatory approvals.
GAIL Gas operates city gas distribution networks across 16 geographical areas in nine states, supplying piped natural gas (PNG) to households and commercial customers and compressed natural gas (CNG) for vehicles.
The company has been expanding its network, with GAIL Gas and its joint ventures adding around 1.91 lakh domestic PNG connections and 120 CNG stations during FY26.
The move towards a public listing comes as the company continues to increase the scale of its operations. Its turnover rose to ₹12,681 crore in FY26 from ₹12,229 crore a year earlier.
GAIL Gas is also pursuing further expansion of its city gas distribution footprint. GAIL has received approval to transfer six geographical areas to the subsidiary, while the company is looking to acquire additional areas from its parent for around ₹1,500 crore.
The proposed listing remains at an early stage, with the appointment of merchant bankers the immediate next milestone. Further details on the issue, including the final structure, pricing and timeline, are expected to emerge as the regulatory process advances.
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This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Rochelle Britto has spent 8+ years decoding India's markets, businesses, and consumer economy, reporting for ET Prime and Times Internet along the way, covering the stories behind the numbers.
A Mumbai native and perpetual planner of the next holiday, she stays far, far away from the eternal question, “Where are we going next?” When she's not chasing headlines, she's chasing new cultures, open roads, and a bit of quiet in nature.
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