The MOIL IPO saw the share over-subscribed by over 56 times and saw unprecedented public enthusiasm. The govt intended to collect close to Rs 40,000 crore through the PSUs divestment. The shares opened trade at 551 rupees on the Bombay Stock Exchange that was 47% higher than the expected offer of 375 rupees.
MOIL produces 50pct of India"s total manganese ore production with an annual output of 1.1 million. The shares have gathered interest following its debt-free history and has cash reserves to the tune of 1770 crore.
The Centre is planning to sell its 10% IPO stake in the company, whereas Madhya Pradesh and Maharashtra governments will offload 5% participating interest each. The price band was fixed by finance minister Pranab Mukherjee, Home Minister P Chidambaram and planning commission deputy chairman Montek Singh Ahluwalia.
The Finance Ministry announced that the price band of the MOIL IPO is Rs 340-375.