New Delhi: The government on Tuesday fixed a price band of Rs340-Rs375 a share for raising up to Rs1,238 crore through initial sale of shares in Manganese Ore India Ltd (MOIL), which will become the fifth state-run company to see divestment this fiscal, reports PTI.
The Centre will dilute 10% stake in the country's largest manganese manufacturer, while Madhya Pradesh and Maharashtra governments will shed 5% each through the public offer that will open on 26th November and close on 1st December.
The issue would raise a total of Rs1,238 crore at the upper end of the price band, including 5% discount to retail investors and MOIL employees.
A meeting of the Empowered Group of Ministers (EGoM), chaired by finance minister Pranab Mukherjee and attended by home minister P Chidambaram and Planning Commission deputy chairman Montek Singh Ahluwalia, fixed the price band at Rs340-Rs375 a share, according to sources.
The initial public offer (IPO) will consist of over 3.36 crore shares. MOIL has a total employee strength of 6,734 and about 3,000 employees have already opened demat accounts.
For the half year ended 30th September, the company's turnover was at Rs635 crore as compared to Rs430 crore in the first half of previous fiscal. Profit after tax for the first half of this year stood at Rs330 crore against Rs201 crore in the year-ago period.
The government, which hopes to raise Rs40,000 crore through disinvestment this fiscal, has already mopped up close to Rs20,000 crore through divestment in PSUs Satluj Jal Vidyut Nigam, Engineers India, Coal India and Power Grid.
After MOIL, the follow-on public offer (FPO) of state-owned Shipping Corporation of India is next in line. Its public offer would open on 30th November and close on 3rd December. This would be followed by disinvestment in Hindustan Copper, whose FPO opens in the first week of December.
The government is likely to dilute its stake in Indian Oil Corporation, ONGC and SAIL in the last quarter of the current fiscal.
In 2009-10, the government had raised Rs25,000 crore through stake sale in Oil India, NMDC, REC and NTPC.
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