Torrent Gas has filed an updated draft red herring prospectus for its initial public offering, under which its parent will sell up to 335 million shares, the company said late Tuesday.
Torrent Gas is not selling any new shares in the IPO and will not receive any proceeds. Reuters earlier reported the IPO could raise up to 40 billion rupees ($418 million).
Torrent Investments, the holding company of the Ahmedabad-based Torrent Group, which also controls listed Torrent Power and Torrent Pharmaceuticals, is Torrent Gas’ sole shareholder offloading shares in the IPO.
India’s markets regulator approved Torrent Gas’ confidential IPO filing in June. The updated draft red herring prospectus filed Tuesday is the company’s first public IPO document.
Torrent Gas supplies piped natural gas (PNG) to households and industries across several states in India. Its listed peers include Adani Total Gas, Indraprastha Gas, Mahanagar Gas and Gujarat Energy.
India has been pushing to boost adoption of piped cooking gas as the U.S.-Iran conflict disrupts fuel shipments and drives up import costs. Last month, the government announced incentives to gas distributors to boost domestic connections.
Torrent Gas’ profit jumped 108% to 2.81 billion rupees in the year ended March 31, while revenue climbed nearly 35% to 59.33 billion rupees.
The IPO also comes as India’s IPO market regains momentum after fundraising activity slowed earlier this year amid the U.S.-Iran war.
Axis Capital, Citigroup and Kotak Mahindra Capital are managing the IPO.
Reuters
