Mahanagar Gas, a joint venture between GAIL (India) Ltd and UK's BG Group PLC , has hired Kotak Mahindra Capital and Citigroup to manage the initial public offering (IPO), sources said.
Gas from the fields of ONGC that came into production after 2010 are being termed as non-APM gas and GAIL has been since November billing higher marketing margin of Rs 10.21 per mmBtu on such fuel sold to consumers, sources said.
GAIL was keen to buy part of Ophir Energy Plc's remaining 20% stake in blocks 1, 3 and 4, which are estimated to hold an estimated 15 trillion cubic feet (tcf) of gas reserves.
The LPG egment suffered loss as the company had to shell out Rs 700 crore in fuel subsidies.