New Delhi, Oct. 31 -- State-owned GAIL (India) Ltd has given in-principle approval to list its wholly owned subsidiary GAIL Gas Ltd on Indian stock exchanges through an initial public offering (IPO), with a proposal to dilute up to 25 per cent of its equity in the company.

In an exchange filing on Friday, GAIL said its board had approved the listing of GAIL Gas shares through the IPO route. The proposal marks a step towards bringing the subsidiary to the public markets, although the final structure and extent of the stake sale are yet to be decided.

The filing said the IPO would involve "diluting GAIL's equity in GGL upto 25%". It added that GAIL Gas would submit a final proposal based on recommendations from the Book Running Lead Manag...