Indraprastha Gas Limited

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In December 2003, Indraprastha Gas Limited (IGL), a state controlled natural gas distribution and retail utility serving National Capital Territory of Delhi (NCT), raised US$ 41 million through an initial public offering (IPO) of 40 million equity shares (28.57 %) in the domestic Indian capital markets (National stock exchange and Bombay stock exchange). IGL was incorporated in 1998 as a joint venture between NCT government (5%) and two government controlled companies - GAIL (India) Limited (22.5%) and Bharat Petroleum Corporation Limited (22.5%). The remaining shares in IGL were held by financial institutions – American International Group, Inc. (AIG) held 25% stake through its local Indian affiliate Infrastructure Leasing & Financial Services Limited (IL&FS), IDFC (15%) and State Bank of India (SBI) (10%). The three selling shareholders in the December 2003 public offering were AIG, IDFC, and SBI. As of March 31, 2007, IGL supplied cooking gas to 75,000 households through piped natural gas (PNG) connections and operated 153 compressed natural gas (CNG) stations that fuelled over 150,000 vehicles and more than 300 commercial customers. Karina advised to enter this project as divestiture since IL&FS, IDFC and SBI are government entities. http://www.iglonline.net None