India's first liquefied natural gas importer Petronet LNG Ltd will debut on the stock markets on March 26 when 260 million equity shares will be listed on the Bombay and the National stock exchanges.

PLL, whose initial public offering closed on March 9 with an over-subscription by 4.2 times, raised Rs 391 crore (Rs 3.91 billion) with the offer price being fixed at Rs 15 per share, sources said.

Share allotment will be completed by the next weekend.

"About 79 per cent of the book was built at the higher end of the Rs 13-15 price band and so the book runners of the issue have decided to fix the offer price for the IPO at Rs 15," they said.

More than 700,000 applications were received by the close of the public offer, with the retail portion of the IPO being over-subscribed 10.5 times.

Petronet LNG, a firm promoted by public sector Indian Oil Corp, Oil and Natural Gas Corp, Gas Authority of India Ltd and Bharat Petroleum Corp Ltd, imported on January 30 at Dahej in Gujarat the country's maiden LNG cargo from Qatar.

India is importing LNG as its domestic production of 65 million standard cubic meters per day was insufficient to meet the demand of 115 mmscmd.

PLL intends to utilise proceeds of the IPO to achieve financial closure of the Rs 2576.68 crore (Rs 25.77 billion) LNG import and regasification facilities of 5 million tonne per annum at Dahej.

The project cost is funded in 70:30 debt-equity mix. PLL has tied up the debt component of Rs 1805 crore (Rs 18.05 billion) while the four promoter companies, who hold 12.5 per cent stake each, have contributed their share.

Project consultant Gaz de France has taken 10 per cent stake and Asian Development Bank has picked the remaining 5.2 per cent.

Sources said the Re 5 per share premium fixed for the IPO will be the guiding premium for all the promoters and strategic investors - Gaz de France and ADB - for paying their share of equity.

PLL has signed an agreement with Rasgas of Qatar for supply of 5 million tonnes of LNG at Dahej, they said adding commercial sales will begin from April.

PLL will import 2.095 million tonnes of LNG from Qatar in 2004 and 4.375 million tonnes in 2005. From 2006, it will import the full capacity of 5 million tonne. Of the total imported quantity, GAIL will offtake 60 per cent, IOC 30 per cent and Bharat Petroleum Corp the remaining 10 per cent.