Oil India share sale today got over-subscribed even before the closure of market hours and the government is estimated to get a minimum of Rs 3,100 crore from the third divestment this fiscal.
The auction, which started in the morning, got bids for ver 7.50 crore shares as on 1459 hours against an offer of over 6.01 crore, as per data on National Stock Exchange.
The indicative price, which is the weighted average price of all valid bids, was Rs 518.04 a share. At this price, the government would garner at least Rs 3,100 crore.
The government had fixed the floor price for the 10 per cent share auction of OIL at Rs 510 apiece. Shares of OIL were quoting at Rs 527.8, down 2.26 per cent from its previous close on NSE.
Bids for over 4.94 crore shares were with 100 per cent margin, meaning if the bidder decides to withdraw later they can do so. Bids that came in with zero per cent margin were over 2.56 crore shares, according to the NSE data.
The final bid figures would come after close of market at 1530 hours.
The government is selling 6.01 crore shares or 10 per cent of its stake in OIL through the offer for sale route. To make the offer for sale process more transparent, market regulator Sebi last month had allowed disclosing the
indicative price throughout the trading session.
The government holds 78.43 per cent stake in the company which would come down to 68.43 per cent after disinvestment. OIL's paid-up capital as on March 2012 was Rs 601 crore. "We expect a good response (to OIL issue)," Disinvestment Secretary Ravi Mathur had said yesterday, adding that the
floor price of Rs 510 a share was at a good discount.
OIL got listed on stock exchanges in 2009.
As on March 31, 2012, the company had employee strength of 8,096.
The government has fixed a disinvestment target of Rs 30,000 crore for the current financial year. With the OIL issue going through successfully, the receipts from PSU stake sale are set to cross Rs 10,000 crore while two more months are remaining in the current financial year.