CMC offer oversold, IBP lags

The CMC public offer was subscribed 1.93 times on the first day with more than 7.69 million shares bid on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).

The government's offer for sale of its remaining 26.2 per cent, or 3.98 million equity shares, in CMC opened yesterday with most of the bids close to the floor price of Rs 475. The offer closes on February 28.

However, the government's offer for sale of its residual stake in IBP failed to receive any significant response, with only 30,870 shares bid on the first day. Most of the bids were close to the floor price of Rs 620 per share.

The government is divesting its remaining 26 per cent stake, or 5.76 million shares, in the oil marketing company. The IBP offer will close on March 1.

The IPCL public offer was subscribed almost 121.81 per cent at the end of the third day of the bidding process.

With the Reliance group turning down the offer to pick up a 5 per cent stake in the company at Rs 195 per share, the total number of shares on offer has now increased from 55.3 million to 71.8 million.

The final offer price for the IPCL float will be announced on February 29 or March 1, after the issue closes on February 27.

The disinvestment ministry is expected to announce the floor price for the public offer of 84.5 million shares in Gail India on February 25, while the price of the Dredging Corporation of India offer is expected to be decided tomorrow. The Gail public offer for disinvestment of 10 per cent government equity is scheduled to open on February 27.