Indraprastha Gas Ltd is expected to hit the market with its initial public offer in mid-November.

This follows deferral of the mandatory listing of book-built primary issues within six days from closure of the offer.

A merchant banker associated with the IGL offer said, "The Sebi's announcement yesterday to defer the T+6 implementation cleared all obstacles. Now the issue will hit the market after the necessary marketing arrangements are made."

Normally, an IPO takes one month to one-and-a-half month time to hit the market after getting the Securities and Exchange Board of India approval.

The merchant bankers to the issue are J M Morgan Stanley, Enam Financial Consultants and Kotak Mahindra.

IGL, a joint venture between GAIL, National Capital Region of Delhi and BPCL, had submitted its IPO proposal to the market regulator in mid-August. But the issue was deferred as Sebi wanted to introduce a T+6 listing schedule for the book-built offers.

Market players pleaded with Sebi on the ground that the infrastructure required for introduction of T+6 schedule was not in place.

The main point they tried to explain was that banks take a minimum of three days to clear cheques within a city, while outstation cheques take more time.

Moreover, there was no connectivity among depositories, banks and registrars. Merchant bankers said it took a minimum of 15 days for the entire process, therefore Sebi should set a more realistic time limit.

Convinced with their arguments, Sebi yesterday deferred the implementation of the T+6 norms till "further notice."

IGL is offering 4 crore (Rs 40 million) shares, held by IL&FS Trust, Infrastructure Development Finance Company and Unit Trust of India, to the public.

The company supplies gas to domestic and commercial consumers and CNG to the transport sector in Delhi.

It is engaged in supplying piped gas to more than 8,200 domestic consumers, 87 commercial consumers and 80,000 vehicles including the Delhi Transport Corporation buses through 113 CNG outlets spread over the city.