MOIL begins stake sale; stock down 4%

The stock was down 4% to Rs 367 on the BSE in early morning trade.

MOIL was down 4% to Rs 367 on the BSE in early morning trade after the government started to sell its 10% stake in the mining company through offer for sale (OFS).

At 09:45 am, the stock was down 2% at Rs 373 on the BSE as compared to 0.37% rise in the S&P BSE Sensex. A combined 384,444 shares have changed hands on the counter on the BSE and NSE so far.

The stock had a strong run-up, appreciated by 55% in past six months against 2% decline in the benchmark index. In past one year, it rallied 85% against 11.4% gain in the Sensex.

The government announced its intention to sell up to 13.32 million equity shares of MOIL of face value of Rs 10 each, representing 10% of the total paid up equity share capital of the company, on January 24, 2017, (for non-retails investors) and January 25, 2017 (for retail investors and non-retails investors who choose to carry forward their un-allotted bids) through a separate designated window of the Bombay Stock Exchange of India (BSE) and the National Stock Exchange of India (NSE), MOIL said in a statement.

The floor price for the issue is kept at Rs 365 per share which is at 4.63% discount to Monday's closing price of Rs 382.70 on the BSE.

Retail investors, for whom 20% of the OFS would be reserved, will get a further discount of 5%. Retailers are those who put in bids for less than Rs 2 lakh.

The government currently holds 75.58% in MOIL, formerly known as Manganese Ore India Ltd.

Meanwhile, five out of six companies in which government had divested its stake via OFS route, now trading at above their offer price.

Company	Offer date	Floor price	LTP	% chg
Engineers India	29/01/2016	94.50	148.55	57.20
NTPC	24/02/2016	122.00	171.70	40.74
NHPC Ltd	28/04/2016	22.00	27.65	25.68
NBCC	21/10/2016	246.50	265.90	7.87
Hind.Copper	30/09/2016	62.00	66.45	7.18
Container Corpn.	10/03/2016	1195.00	1182.75	-1.03
LTP : Last traded price on BSE in Rs at 09:42 am
Source: CapitalinePlus