MOIL stake sale at Rs 365 a share tomorrow; govt to get Rs 480 cr

The floor price is at a discount of 4.63% over the closing price of MOIL at Rs 382.70 on the BSE

The Government will sell 10 per cent stake in state-owned manganese miner MOIL on Monday at a floor price of Rs 365 a share, which will fetch around Rs 480 crore to the exchequer.

The floor price is at a discount of 4.63 per cent over the closing price of MOIL at Rs 382.70 on the BSE.

The government is selling over 1.33 crore equity shares of MOIL of face value of Rs 10 each, representing 10 per cent of the total paid-up equity share capital of the company, MOIL said in a filing to the BSE.

"MOIL is a very good share. We are expecting upside in the share price and expect investors to invest in the OFS," Department of Investment and Public Asset Management (DIPAM) Secretary Neeraj Gupta said.

The two-day offer for sale (OFS) will open for institutional bidding on Friday and retail investors will be able to subscribe on January 25.

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

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

"The government will divest 10 per cent stake in MOIL tomorrow at a floor price of Rs 365 apiece," the official added.

Earlier this financial year, the government had raised about Rs 794 crore through share buyback of MOIL.

The government has so far raised about Rs 30,000 crore through minority share sale by way of OFS, share buyback and CPSE ETF so far in the current financial year.

Last week, the Department of Investment and Public Asset Management (DIPAM) launched the second tranche of CPSE Exchange Traded Fund (ETF) which was over-subscribed 2.30 times. The sale fetched Rs 6,000 crore to the exchequer.