Investors make a beeline for MOIL shares in IPO

Issue subscribed more than 50 times

The initial public offer (IPO) of state-run manganese producer MOIL was subscribed a massive 53.84 times by 16:00 IST, on the last of the bidding for the issue today, 1 December 2010. The IPO got bids for 180.9 crore shares, compared with 3.36 crore shares on offer. The subscription amount exceeded Rs 60000 crore.



Institutional investors made a beeline for the shares of MOIL in the IPO, with the qualified institutional buyers (QIB) category subscribed 49.16 times. Bidding for the MOIL IPO by QIBs ended on Tuesday, 30 November 2010. Bidding for the IPO by all other category of investors ends today, 1 December 2010.

Within the QIB category, foreign institutional investors (FIIs) put in bids for 30.88 crore shares, compared with 1.64 crore shares reserved for the QIB category as a whole. Domestic institutional inventors other than mutual funds, put in bids for 42.86 crore shares. Mutual funds put in bids for 6.91 crore shares.

The price band for the IPO is Rs 340-375 per share. A 5% discount will be given to retail investors and MOIL employees on the final price discovered through the book building process.

The government will raise up to Rs 1238 crore at the top end of the price band through the MOIL IPO, which is the part of the government's plan to raise Rs 40000 crore from stake-sale in state-run firms in the current fiscal that ends in March 2011 (FY 2011).

The Centre is divesting 10% stake in the MOIL, while the Madhya Pradesh and Maharashtra state governments will divest 5% each through the public offer. The company will not receive any proceeds from the offer and all proceeds shall go to the selling shareholders.

MOIL posted net profit of Rs 331.46 crore on sales of Rs 635.05 cr