MOIL Limited is involved in the exploration, exploitation and marketing of manganese ore and products, such as electrolytic manganese dioxide and high carbon Ferro manganese alloy. The Company operates through three segments: mining, manufacturing and power generation.
Government of India is selling 10% stake in state-owned manganese miner MOIL through Offer for Sale on 24th January, 2017 at a floor price of Rs 365 a share, which will fetch more than Rs 480 crore to the exchequer.
The GoI has offered 1,33,18,780 equity shares of the company of face value of Rs 10 each, which has representing 10% of the total paid up equity share capital of the company.
The two-day offer for sale (OFS) will open for institutional bidding on Tuesday, 24th January and retail investors will be able to subscribe on Wednesday, January 25.
For the retail investors 20% of the OFS is reserved, and also will get a further discount of 5% in the offer for sale (OFS). Retailers are those who put in bids for less than Rs 2 lakh.
At present, the government is holding around 75.58 % stake in the company. MOIL Ltd is a Schedule “A” Miniratna Category-I company. It was originally incorporated as Manganese Ore (India) Limited in the year 1962. Subsequently, name of the company was changed from Manganese Ore (India) Limited to MOIL Ltd during the financial year 2010-11.
Earlier this fiscal, the government had raised about Rs 794 crore through share buyback of MOIL.
The key details in this context are given below:
|Name of seller||The President of India, acting through and represented by the Ministry of Steel, Government of India|
|Name of company whose shares are proposed to be sold||MOIL Limited (ISIN INE490G01020)|
|Name of stock exchanges where orders shall be placed||BSE and NSE|
|Date and time of opening the offer for Retail investors||January 25, 2017 at 9.15 a.m.|
|Date and time of closing the offer for Retail investors||January 25, 2017 at 3.30 p.m.|
|Date and time of the opening of the offer for non-retail investors||January 24, 2017 at 9.15 a.m.|
|Date and time of the closing of the offer for non-retail investors||January 24, 2017 at 3.30 p.m.|
|Floor Price||Rs.365 per share|
|Retail Discount||Retail investors will be allocated offer shares at the Discounted price i.e. at a discount of 5% to the Cut-off price in accordance with the OFS Guidelines. The discounted price, which shall be the final allocation price to the Retail investors, may be below the floor price.|