Govt hints at discount for retail investors in IPOs
Disinvestment Ministry favoured discount to retail investors in forthcoming IPOs in six companies.business Updated: Feb 17, 2004 12:29 IST
The Disinvestment Ministry on Tuesday favoured discount to retail investors in the forthcoming public issues in six companies beginning with public float of IPCL on February 20.
"Government has always...as in case of Maruti also... wanted to reward small investors. But what extent of discount there is and whether there is a lock-in period, all that will be in our proposal to the Finance Minister," Disinvestment Minister Arun Shourie told reporters when asked about the differential pricing in the forthcoming issues.
On whether differential pricing would be adopted in case of all the six ensuing IPOs, Shourie said: "each of these companies are so different that we will have to do different things."
"Do not hold me to a particular standard. We will have to craft the things in different ways," Shourie told reporters on the sidelines of Gartner Telecom Summit.
With IPCL public offering slated for February 20, Shourie said the price band would be announced after the close of the market on February 19, and that the roadshows were being flagged off in Mumbai on Tuesday.
"The price band will be announced on evening of February 19. As in case of Maruti, we do it at that time. I will report to Finance Minister to get his concurrence and guidance and then we will annnounce. We will do it after market closes," he said.
Shourie said the GAIL offering would take place in the domestic market.
"Due to time constraints and because the figures for disinvestment have already been included by the Finance Minister in his vote on account estimates for the Budget deficit, it was decided that it will all be done in the Indian market," he said adding, "also this is the first flush, so reward the Indian investor."