NEW DELHI: The central government has set the ball rolling for a 10 percent stake sale in Nagpur-based manganese miner MIOL to raise about Rs 480 crore. The floor price of the issue has been set at Rs 365 a share, which is at a discount of 4.63 percent over the closing price of MOIL at Rs 382.70 on the BSE.
The government is selling 1.33 crore equity shares of MOIL of face value of Rs 10 each, representing 10 per cent of the total paid-up equity share capital of the company, the company said in a filing to the BSE.
“MOIL is a very good share. We are expecting upside in the share price and expect investors to invest in the OFS (offer for sale),” said Department of Investment and Public Asset Management (DIPAM) Secretary Neeraj Gupta.
The two-day OFS will open for institutional bidding on Tuesday, while retail investors (those bidding for less than Rs 2 lakh) will be able to subscribe on Wednesday.
As much as 20 percent of the OFS would be reserved for retail investors, who will get a discount of five per cent to the cut-off price in accordance with the OFS guidelines. The discounted price, which shall be the final allocation price to retail investors, may be below the floor price.
The government currently holds 75.58 percent in MOIL, formerly known as Manganese Ore India. Earlier, the government had raised Rs 794 crore through share buyback of MOIL. So far in the current financial year, it has raised about Rs 30,000 crore through minority share sale by way of OFS, share buyback and CPSE Exchange Traded Fund (ETF).
Last week, DIPAM launched the second tranche of CPSE ETF, which was over-subscribed 2.30 times. The sale fetched Rs 6,000 crore to the exchequer.