MOIL Stake Sale: Institutional Buyers Put Up Strong Bids

MOIL Stake Sale: Institutional Buyers Put Up Strong Bids

New Delhi: The government's 10 per cent stake sale in MOIL Ltd opened to an enthusiastic response on Tuesday, with nearly one-third of the shares reserved for non-retail investors being lapped up in initial hours.

The 2-day offer of sale (OFS) of the government's 10 per cent shares in MOIL at a floor price of Rs 365 opened for non-retail investors today.

According to stock exchange data, 29.19 per cent of the 1.06 crore shares reserved for the non-retail segment were subscribed in the first two-and-a-half hours of opening.

The MOIL stock was trading 2.3 per cent down at Rs 374 on BSE at 1145 hours.

The shares will be available for subscription by retail investors tomorrow. Retail buyers will be allocated shares at a discount of 5 per cent to the cut-off price.

In all, the government is selling 1.33 crore shares through the OFS route at a floor price of Rs 365. The share sale would fetch Rs 480 crore to the exchequer.

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.

The government has so far raised about Rs 30,000 crore 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.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)