MOIL issue price fixed at Rs 375, listing likely on Dec 15 | business | Hindustan Times
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MOIL issue price fixed at Rs 375, listing likely on Dec 15

State-run MOIL's initial public offering is expected to mop-up a tidy Rs 1,260 crore at the issue price of Rs 375 per share announced by the government on Friday and the company is expected to make its stock exchange debut on December 15, the Finance Ministry said.

business Updated: Dec 03, 2010 19:42 IST

State-run MOIL's initial public offering is expected to mop-up a tidy Rs 1,260 crore at the issue price of Rs 375 per share announced by the government on Friday and the company is expected to make its stock exchange debut on December 15, the Finance Ministry said.

"Each share of MOIL will be issued at Rs 375 and the company is likely to be listed on December 15," Finance Ministry sources said, making the manganese miner the fifth PSU in which the government has divested its stake this fiscal.

The issue price of Rs 375 per share is at the upper end of the price band of Rs 340-375 fixed by the government.

The public stake sale, which opened for subscription on November 26, was oversubscribed more than 56 times. By the end of the final day of the offer on December 1, it had attracted bids for 189.13 crore shares, though only 3.36 crore equities were up for grabs.

At the issue price of Rs 375 per share, the IPO would raise about Rs 1,260 crore.

The Centre is divesting a 10% stake in the company under the IPO, while the state governments of Madhya Pradesh and Maharashtra will offload 5% participating interest each.

The price band was fixed by an Empowered Group of Ministers chaired by finance minister Pranab Mukherjee and attended by mome minister P Chidambaram and planning commission deputy chairman Montek Singh Ahluwalia.

The government, which hopes to raise Rs 40,000 crore through PSU disinvestment this fiscal, has already mopped up close to Rs 20,000 crore through divestment in PSUs Satluj Jal Vidyut Nigam, Engineers India, Coal India and Power Grid.