MOIL share sale: Retail investor quota over-subscribed

NEW DELHI, Jan 25:  The 10 per cent stake sale of state-owned manganese miner MOIL today got fully subscribed, with retail investors outbidding the portion reserved for them and ensuring Rs 480 crore for the exchequer.
Retail investors bid for over 38.63 lakh shares against the 26.63 lakh reserved for them. The bidding by individual investors took the retail subscription to 1.45 times, data showed.
Retail investors are being given 5 per cent discount to the share allotment price.
The share sale, which was open to institutional buyers yesterday, saw subscriptions worth over Rs 580 crore coming in on the first day. It attracted bids for over 1.60 crore shares as against 1.06 crore offered to institutional investors, garnering a subscription of 1.51 times.
In all, the government is selling 1.33 crore shares through the OFS route at a floor price of Rs 365.
With all-round participation from retail and institutional buyers, MOIL share sale is expected to garner Rs 480 crore.
The stock of MOIL was trading at Rs 367.70, down 0.15 per cent, on BSE.
The 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. (PTI)