The government today fixed a price band of Rs 340-375 a share for raising up to Rs 1,238 crore through initial sale of shares in MOIL Ltd. This will become the fifth state-run company to see divestment this current financial year.
The Centre will dilute 10 per cent stake in the country's largest manganese manufacturer, while the Madhya Pradesh and Maharashtra governments will shed 5 per cent each through the public offer that will open on November 26 and close on December 1.
The issue would raise a total of Rs 1,238 crore at the upper end of the price band, including a five per cent discount to retail investors and MOIL employees.
A meeting of the Empowered Group of Ministers, 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, according to sources.
The initial public offer will consist of 33.6 million shares.