MOIL IPO subscription reaches 28.62 times its issue size

NEW DELHI: Robust demand from investors saw MOIL's initial sale offer getting subscribed 28.62 times on the third day of issue on Wednesday, translating into a total demand of Rs 36,059 crore.

The public offer which opened for subscription on November 26 has so far attracted total bids of 96.15 crore shares, as against 3.36 crore on offer, a National Stock Exchange data showed.

"The spectacular performance of Coal India's IPO has paved way for state-run firms who are floating their public offers. MOIL's great show is the reflection of the same. Also, the issue was priced very reasonably attracting investors," SMC Global Securities Equity head Jagannadham Thunuguntla said.

MOIL's open offer is closed today for the QIBs. For retail and non-institutional bidders, the issue will end on December 1.

The government has fixed the price band for shares on offer at Rs 340-375 a piece. The Centre will divest 10 per cent stake in the company through this IPO, while the state governments of Madhya Pradesh and Maharashtra will offload five per cent each.

At the upper end of the price range, MOIL's IPO is worth nearly Rs 1,260 crore and at the lower end, it would fetch about Rs 1,142 crore.

Edelweiss Capital, IDBI Capital Market Services and JP Morgan India Private are the book running lead managers to the issue.