Shares in Mahanagar Gas made a stellar debut on the bourses with the stock jumping as much as 25 per cent in trade.
The shares of Mahanagar Gas were last trading at Rs 527.40 on the NSE.
The company made an offer for sale which was was oversubscribed more than 64 times last week. The IPO was sold in the price band Rs 380 and Rs 421 and saw a superb response.
The demand for the IPO was the highest since MOIL in Dec 2010.
The money raised through he public issue was largely meant for the promoters who sold a stake in the company. Most of the brokerages had placed a buy call on the IPO, citing the fact that the valuations were not too expensive.
Emkay Global had said that they expect CNG volumes to grow at 5.3% compounded annual growth rate (CAGR) over fiscal years 2016 to 2019, mainly on the addition of Raigad district, healthy vehicle demand in Mumbai and Navi Mumbai, and the conversion of taxis and buses to CNG. It also expected PNG volumes to grow by 7% CAGR in the same period.
Most of the other brokerages had also suggested subscribing to the stock, considering the relatively cheap valuations.