The government’s stake sale in manganese miner MOIL received a good response on Tuesday with the non-retail portion getting subscribed by more than 150% as of 5 pm. Institutional investors bid for 1.6 core shares against the 1.06 crore shares on offer.
Retail investors will be allowed to subscribe Wednesday and shares will be allocated to them at a discount of 5% to the cut-off price. Retail investors are categorised as those who put in bids for less than Rs 2 lakh.
The government is selling 1.33 crore shares through the OFS route at a floor price of Rs. 365. The government currently holds 75.58 per cent in MOIL, formerly known as Manganese Ore India Ltd. On Tuesday, the MOIL stock fell by 3.78% and closed the session at Rs 368.25.
A combined 9.64 lakh shares have changed hands on the counter on the BSE and NSE on Tuesday. In the past 12 months MOIL has appreciated 81% against 11.7% in Sensex. The government has so far raised about Rs. 30,000 crore through minority share sale by way of OFS, share buyback and CPSE ETF in the current financial year.
Last week, the Department of Investment and Public Asset Management (DIPAM) had launched the second tranche of CPSE Exchange Traded Fund (ETF), which was over-subscribed two times. The sale fetched Rs. 6,000 crore to the exchequer. The government aims to raise Rs.56,500 crore by selling stakes in state-owned enterprises in the current financial year.