MOIL IPO subscribed 0.76 times on Day 1

MOIL IPO subscribed 0.76 times on Day 1

Mumbai: The initial public offer (IPO) of state- owned MOIL was subscribed 0.76 times on the first day of the issue on Friday, generating demand worth Rs953 crore.

The IPO -- through which MOIL, formerly known as Manganese Ore (India) Ltd, aims to garner up to Rs1,238 crore -- has received bids for 2.54 crore shares as against 3.36 crore equity shares on offer, as per data available on the National Stock Exchange website.

The issue was subscribed 0.93 times in the portion reserved for qualified institutional buyers, while 32% of the shares earmarked for retail investors received bids on Day 1 of the issue.

“The issue has been received well by the market on the first day and is likely to get over-subscribed by the final day," CNI Research CMD Kishore P. Ostwal said.

The offer will close on 30 November for qualified institutional buyers (QIBs) and on 1 December for retail and non-institutional bidders.

The government has fixed the price band of shares under the IPO at Rs340-375 apiece. The Centre will divest 10% of its stake in the company under the IPO, while the state governments of Madhya Pradesh and Maharashtra will both offload 5% participating interest.

Edelweiss Capital, IDBI Capital Market Services and J P Morgan India Private Ltd are the book running lead managers to the issue.