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IPCL issue price fixed at Rs 170 per share
New Delhi, Feb 28: The government has set a price of Rs 170 per share for its 29 per cent stake in IPCL through the book-building route, bids for which opened on Feburary 20.
New Delhi, Feb 28: The government has set a price of Rs 170 per share for its 29 per cent stake in IPCL through the book-building route, bids for which opened on Feburary 20.
The government had fixed a floor price of Rs 170 for the issue, which was oversubscribed 4.8 times, where the price at which retail investors were promised discount of 5 per cent discount on the discovered price at Rs 161.50 .
Of the 71850056 shares on offer, retail investors got 50 per cent while the rest went to qualified institutional investors. The government would be receiving Rs 1,200 crore through the entire process and we had received two lakh applications, Disinvestment Minister Arun Shourie told reporters today.
At the time of the IPO, the government offered an additional 5 per cent stake to reliance, which holds a 46 per cent stake in the company, at Rs 195 per share. However, the company declined the offer.
IPCL was disinvested on May 18, 2002, when Reliance picked up a 26 per cent stake in it for Rs 1,490.84 crore, or Rs 231 per share. This stake was later hiked up to 46 per cent after an open offer. The IPCL share closed at Rs 187.65 at the Bombay Stock Exchange on Friday, up 3.22 per cent.
The government held about 33.95 per cent stake in IPCL of which it is off-loading 29 per cent through the IPO route while the rest five per cent would be given to employees.
Bureau Report
The government had fixed a floor price of Rs 170 for the issue, which was oversubscribed 4.8 times, where the price at which retail investors were promised discount of 5 per cent discount on the discovered price at Rs 161.50 .
Of the 71850056 shares on offer, retail investors got 50 per cent while the rest went to qualified institutional investors. The government would be receiving Rs 1,200 crore through the entire process and we had received two lakh applications, Disinvestment Minister Arun Shourie told reporters today.
At the time of the IPO, the government offered an additional 5 per cent stake to reliance, which holds a 46 per cent stake in the company, at Rs 195 per share. However, the company declined the offer.
IPCL was disinvested on May 18, 2002, when Reliance picked up a 26 per cent stake in it for Rs 1,490.84 crore, or Rs 231 per share. This stake was later hiked up to 46 per cent after an open offer. The IPCL share closed at Rs 187.65 at the Bombay Stock Exchange on Friday, up 3.22 per cent.
The government held about 33.95 per cent stake in IPCL of which it is off-loading 29 per cent through the IPO route while the rest five per cent would be given to employees.
Bureau Report