Government today raised Rs 480 crore from the sale of its 10 per cent stake in MOIL after retail investors lapped up more than 5 times the shares offered to them.
Retail investors, who were also given 5 per cent discount to the share allotment price, bid at a cut off price of around Rs 378 a share -- much higher than the floor price of Rs 365.
Individual investors bid for over 1.42 crore shares as against 26.63 lakh shares or 5.37 times the number reserved for them in the two-day offer for sale which closed today.
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The portion allocated to institutional investors was bid 1.51 times yesterday, with Rs 580 crore seen pouring in on the first day of the issue.
Overall, government sold 1.33 crore shares through the OFS route at a floor price of Rs 365.
With all-round participation from institutional and retail buyers in MOIL stake sale, government is set to garner Rs 480 crore once shares are alloted to the bidders.
Finance Ministry officials said the response of retail investors in MOIL share sale was "encouraging" and much better than the general trends in other OFS.
MOIL stock closed at Rs 372.30, up 1.10 per cent, on the BSE.
Government currently holds 75.58 per cent in MOIL, formerly known as Manganese Ore India Ltd. Earlier this fiscal, the government had raised about Rs 794 crore through share buyback of MOIL.
MOIL is the fourth disinvestment through the OFS route in the current fiscal. The government had sold 15 per cent in NBCC to mobilise Rs 2,200 crore in October, 7 per cent in Hindustan Copper to raise Rs 400 crore in September and 11.36 per cent in NHPC to garner Rs 2,716 crore in April.
About Rs 30,000 crore have been raised through minority share sale by way of OFS, share buyback and CPSE ETF so far in the current fiscal.
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 times. The sale fetched Rs 6,000 crore to the exchequer.
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