Inspired by the resounding success of Maruti Udyog Limited's IPO, Indraprastha Gas Ltd - the monopoly CNG and piped gas supplier in the national capital - is also planning to take the same route.

IGL has an equity base of Rs 140 crore (Rs 1.4 billion), represented by 14 crore (140 million) shares of Rs 10 each.

"Financial institutions plan to offload half their 50 per cent shareholding in IGL through an Initial Public Offering (IPO), possibly by September end. The stock will be listed on major stock exchanges in October," IGL Managing Director A K De told PTI in Delhi.

Infrastructure Leasing & Financial Services, Infrastructure Development Finance Company and Unit Trust of India, who hold 20, 20 and 10 per cent stake respectively in the Rs 140 crore (Rs 1.4 billion) equity of IGL, propose to offload 3.5 crore (35 million) equity shares in the market through the book-building route.

The issue may carry a floor price of Rs 30 per share and is expected to fetch anything between Rs 100 to Rs 150 crore.

De said JM Morgan Stanley, Kotak Mahindra Finance and Enam Securities have been appointed lead managers for the IPO and the draft prospectus of the issue may be out in a month's time.

IGL Chairman Proshanto Banerjee said the company board has approved the IPO through the book building route.

Post-IPO, FIs' holding is expected to come down to around 25 per cent, while the promoters Gas Authority of India Limited, Bharat Petroleum Corporation Ltd and the Delhi government will continue to retain their 50 per cent stake.

GAIL and BPCL hold 22.5 per cent equity, while the Delhi government holds 5 per cent.

De said IGL plans to invest around Rs 500 crore (Rs 5 billion) in increasing the number of CNG stations to 155 from the present 113.

It is also planning to take piped natural gas (PNG), a LPG replacement as cooking fuel in domestic kitchens, to east and west Delhi while consolidating its presence in the south where at present it services about 9,000 customers.

Piped natural gas is up to 40 per cent cheaper than LPG, which is priced at Rs 241 per 14.5-kg cylinder. Also, PNG is safer to handle than LPG, De said.

Meanwhile, Petroleum Minister Ram Naik on Sunday said the capital would have enough natural gas to meet automobile and industrial demand from next year when India begins importing gas from Qatar.

"Petronet LNG, a company proposed by public sector oil firms, would begin importing five million tonnes of Liquefied Natural Gas (LNG), which will be shipped from early 2004. After this, the gas requirement of Delhi would be met in full," he said at the inauguration of a CNG station in Delhi.

As current gas supplies are only 60 per cent of the domestic demand, allocations to industries were cut to meet the Supreme Court directive of increasing gas supplies to the transport sector in Delhi, he said.

With the inauguration of a mega CNG station in Rohini, the number of CNG stations of the Indraprastha Gas Limited has gone up to 113.