The offer-for-sale by the government to divest its 10 per cent stake in Indian Oil Corporation got off to a slow start on a day when markets worldwide were feeling the heat over fears of a China-led global economic slowdown.
At noon, the Rs. 9,396 crore OFS was subscribed 21.01 per cent of the over 242.79 crore shares that were on offer at a floor price of Rs. 387 apiece.
The stock is currently ruling at Rs. 381.
While the institutional portion was subscribed 25.75 per cent, the retail investors remained lukewarm, as their portion was subscribed by just 2.23 per cent.
The Centre, which plans to sell 24.27 crore equity shares or 10 per cent of the total paid-up equity share capital through the OFS, allots at least 20 per cent of the offer to retail investors, who will also get a 5 per cent discount to the cutoff price.
The Union Government currently holds a 68.57 per cent stake in Indian Oil and plans to raise at least Rs. 9,500 crore through the stake sale.
The Government has set a disinvestment target of Rs. 69,500 crore for the current financial year.
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