MOIL IPO subscribed at 55 times the bid

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Mumbai, Dec 2: After the two hugely successful IPO offerings in terms of Government sector issuance's MOIL (Manganese Ore India Ltd) has broken new ground by chalking a subscription offer that is 55 times its initial bid. This makes the MOIL IPO the largest total subscription multiples seen in a primary market issuance this year. The news comes soon after investors and other establishments lapped up Coal India's and Power Grid's IPO offerings a few months back.

MOIL accounts for 50pct of India"s total manganese ore production with an annual output of 1.1 million . It is a debt-free company with cash reserves to the tune of 1770 crore.

A share-sale of Rs 1,238-crore share sale saw buyers from institutions and individual investors alike.The 3.36 crore equity share issue was subscribed more than 49 times in the portion reserved for institutions, data from stock exchanges show. While the portion reserved for high net worth individuals, was bid 143 times, the retail portion saw subscriptions exceeding 28 times inspite of the fact that the limit was doubled to Rs 2 lakh per application.

MOIL"s revenue has surged between 2006 and 2010 and stands at an annual rate of 31.5% on rising output and soaring prices. The Government, which planned to raise close to Rs 1,200 crore through the IPO, received subscriptions worth more than Rs 56,000 crore.

The strong response to MOIL, may help it surpass the target of Rs 40,000 crore. MOIL is the third consecutive Government sector issuance that has received more than 10 lakh retail applications.

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