MOIL share sale: Institutional bidder portion over-subscribed

New Delhi: The government's 10 percent stake sale in MOIL Ltd opened to an enthusiastic response on Tuesday, with the shares reserved for non-retail investors getting over-subscribed in the post noon trade.

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

The share sale got fully subscribed with bids coming in for over 1.06 crore shares reserved for the non-retail segment at 1345 hours, as per stock exchange data.

The MOIL stock was trading 2.97 percent down at Rs 371.35 on BSE at 1346 hours.

The shares will be available for subscription by retail investors tomorrow. Retail buyers will be allocated shares at a discount of 5 percent 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 percent 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.