Mumbai: State-run oil producer Oil India Ltd’s offer for sale, or OFS, of a 10% stake in itself was oversubscribed on Friday. Investors had bid for 94.2 million shares, compared with the 51.9 million shares on offer as of 3.25pm.
The floor price for the shares was fixed at Rs.510 apiece.
Oil India is expected to raise Rs.2,600-3,000 crore through the OFS, a part of the government’s divestment plan.
The indicative price of each share in the OFS, or the price at which the shares could be allotted, was Rs.516.22. The stock dropped 2.53% to Rs.525.55 on BSE on Friday.
Foreign institutional investors such as Sweden’s Nordea, UK-based pension fund BA Pension, Maryland-based asset manager T Rowe Price and South Korean asset management firm Mirae participated in Oil India’s OFS, said a person with direct knowledge of the matter. In the domestic institutional investor category, ICICI Prudential Life Insurance, ICICI Prudential Mutual Fund, Life Insurance Corporation and GIC placed bids, said the person.
“Details of allocation of shares will be ascertained late in the evening. All bids above Rs.520 a share will get full allotment as per their bid. Bids at Rs.520 a share should get 80% of the quantity asked for,” the person said on condition of anonymity as the final details are yet to be publicly announced by the department of divestment.