MC EXCLUSIVE Torrent Gas files draft papers for IPO via confidential route

GSP Crop Science IPO allotment is likely to be finalised on March 20. 

• Torrent Gas submits confidential pre-filing papers to Sebi
• Listing may dilute promoter stake, no primary share issue planned
• Axis, Kotak Mahindra, Citi advising on IPO

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Torrent Gas, the Torrent Group's integrated city gas distribution (CGD) business, has filed draft papers with market regulator Sebi via the confidential pre-filing route, multiple industry sources in the know told Moneycontrol.

If the listing plans fructify, Torrent Gas would become the third listed firm from the Gujarat-based diversified conglomerate post Torrent Pharmaceuticals and Torrent Power.

“The draft papers have been submitted. There is no primary portion and the issue consists of a pure OFS (Offer For Sale),” one of the persons said.

A second person added that Axis Capital, Kotak Mahindra Capital and Citi are the investment banks working on the proposed issue.

Both the persons above spoke on the condition of anonymity.

An email query to Torrent Gas remained unanswered at the time of publishing this article. This article will be updated as soon as we hear from the company.

According to its website, Torrent Gas has been authorized to set up CGD infrastructure and sell compressed natural gas (CNG) to vehicle users and piped natural gas (PNG) to industries and households across 34 districts spread over seven states and one union territory.

Jinal Mehta is the Chairman of the board of directors of Torrent Gas which roped in oil and gas industry veteran Manoj Jain as the Managing Director in 2023.

The listed peers of Torrent Gas include Indraprastha Gas, Mahanagar Gas, Gujarat Gas and Adani Total Gas.

The Confidential Filing Route

Introduced by Sebi as an alternate for main board issuers in November 2022, pre-filing allows companies to keep sensitive business details or financial metrics and risks under wraps, especially from rivals. On the other hand, in the standard format, the DRHP (draft red herring prospectus) becomes a public document post filing.

This gives issuers the comfort of confidentiality till they arrive at a final decision on the listing, and if required, they can even pull out later, depending on market conditions, without disclosing key information.

In the past, several other issuers have opted for the confidential pre-filing route, like Tata Capital, Tata Play, Oyo, Swiggy, Vishal Mega Mart, Credila Financial Services, Indira IVF, PhysicsWallah and PhonePe.