moil ipo | moil ipo price band | MOIL ipo will be opened on november 26th

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moil ipo | moil ipo price band | MOIL ipo will be opened on november 26th

MOIL Ltd. said on Friday that its shares will be available to investors in an initial public offering (IPO) from Nov. 26 to Dec. 1, while the last date for qualified institutional buyers (QIB) has been fixed as Nov. 30.

The issue price for the IPO will be fixed on November 23 by an Empowered Group of Ministers (GoM).

The Registrar of Companies has already approved the revised IPO prospectus for the sale of 3.36 crore shares and the same has been forwarded to market regulator Securities and Exchange Board of India (SEBI).

MOIL plans to raise around Rs. 15bn, according to reports. The company plans to dilute around 20% equity. Madhya Pradesh and Maharashtra governments will divest 5% stake each in MOIL.

In September, the Government approved a plan to sell a 20% stake in MOIL, comprising holdings of the Central, Maharashtra and Madhya Pradesh governments.

Out of the total shares on offer, the Centre’s shares will account for 10%. Madhya Pradesh and Maharashtra governments will divest 5% stake each in the PSU.

In the MOIL IPO, 2% shares will be reserved for its over 6,500 employees.

Retail investors will get a 5% discount on the issue price.

Retail investors can also put in Rs. 2 lakh as compared to the earlier limit of Rs. 1 lakh.

MOIL is investing Rs. 7.68bn in capacity expansion as it looks to ramp up manganese output to 1.5 million tons per annum by 2015-16 from the present 1.1 million tons.

The company operates 10 mines, six of which are located in the Nagpur and Bhandara districts in Maharashtra and four in the Balaghat district of MP.

MOIL IPO is part of the Government’s plan to raise Rs. 400bn by the end of the current fiscal through the sell of shares in PSUs. The FY11 disinvestment target will not be revised upwards, Disinvestment Secretary Sumit Bose said on Thursday.

MOIL is looking to acquire mining properties in South Africa, Congo and Turkey, as the demand for manganese by Indian steel producers is expected to rise in the near future, K.J. Singh, chairman and managing director, MOIL was quoted as saying.

MOIL’s manganese iron ore reserves are at 69 million tons. Its total production of manganese ore constitutes about half of the country’s requirements. It is the largest manganese ore company in India and the fifth largest in the world.

For the financial year FY10, MOIL reported net sales of Rs. 9.63bn as against Rs. 12.82bn in FY09 and a net profit of Rs. 4.66bn versus Rs. 6.64bn.

Bose was quoted as saying yesterday that Shipping Corporation of India (SCI) has filed the red herring prospectus (RHP) with market regulator SEBI.

SCI is likely to hit the markets with Rs. 13bn FPO by the end of this month or early December. The Government in October had approved selling its 10%, comprising of 42.35mn shares, in SCI.

It had allowed SCI to issue fresh equity to the tune of 10% of the paid-up capital.

Indian Oil Corp (IOC) has already appointed six merchant bankers to handle its issue, comprising fresh equity issue of 10% and disinvestment of 10% by the Government. According to reports, the Government intends to raise about Rs. 240bn through a 10% stake sale in IOC. Besides, the Government will also disinvest 5% in ONGC.

Source: indiainfoline