Government not to go for anchor investor for MOIL IPO

The government has decided that the initial public offering of state-owned mini-ratna MOIL Ltd (formerly Manganese Ore (India) Ltd), due to hit the market tomorrow, will not have any anchor investor.

The IPO's price band has been pegged at Rs340-375 a share.

''There is no anchor investor for this. This (anchor investors) is an option that SEBI provides. We have always kept the option open till very last. There is adequate demand from FIIs and institutional investors as reported by BRLMs. Hence, we have decided not to go in for anchor investors,'' Sumit Bose, disinvestment secretary, said at a press conference in New Delhi.

The government had decided against an anchor investor in the recently concluded mega IPO of Coal India Ltd and also the further public offering of PowerGrid Corporation of India Ltd.

Terming MOIL as yet another jewel in the PSU crown which the government was seeking to disinvest through an IPO, Bose said all efforts had been taken to price the issue ''reasonably and fairly.''

''I have emphasised time and again that we have attempted to price all the public sector divestment issues fairly and reasonably. Sometimes it may have played out differently in the market because there are other forces. Market forces are supreme but attempt has always been to price reasonably and fairly.