Torrent Gas files updated draft prospectus for IPO
The Ahmedabad-based gas distributor is entering the public market as India’s IPO activity shows signs of regaining momentum after a slower period
Torrent Gas has submitted an updated draft prospectus for its initial public offering (IPO), according to the company. The IPO aims to sell up to 335 million shares, though Torrent Gas itself will not receive any proceeds. The company's parent, Torrent Investments, is the sole shareholder offloading shares in the offering.
India's markets regulator approved Torrent Gas' confidential IPO filing in June. This is the company's first public IPO document, filed as a red herring prospectus. Torrent Gas provides piped natural gas (PNG) to households and industries across several Indian states. Competitors in the industry include Adani Total Gas, Indraprastha Gas, Mahanagar Gas, and Gujarat Energy.
The Indian government is encouraging the use of piped cooking gas due to the impact of the U.S.-Iran conflict on fuel shipments and rising import costs. Last month, the government announced incentives for gas distributors to boost domestic connections. Torrent Gas reported a profit surge of 108% to 2.81 billion rupees for the year ended March 31, with revenue increasing nearly 35% to 59.33 billion rupees.
The IPO comes as India's IPO market shows renewed vigor following a slowdown in fundraising activity earlier this year, influenced by the U.S.-Iran war. Axis Capital, Citigroup, and Kotak Mahindra Capital are managing the IPO.
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