MOIL issue price fixed at Rs 375, listing likely on Dec 15

Source :ET:NEW DELHI:4 DEC, 2010, 07.14AM IST,PTI 


 State-run MOIL's issue price has been fixed at Rs 375 per share at which Rs 1,260 crore will be raised from IPO investors , and the company is likely to get listed on stock exchanges on December 15. 

"Each share of MOIL will be issued at Rs 375 and the company is likely to be listed on December 15," Finance Ministry sources told PTI, making the manganese miner the fifth PSU to divest 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 per cent stake in the company under the IPO, while the state governments of Madhya Pradesh and Maharashtra will offload 5 per cent participating interest each. 

The price band was fixed by an Empowered Group of Ministers chaired by Finance Minister Pranab Mukherjee and attended by Home 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.