Manganese Ore IPO likely to be priced at Rs375; to raise around Rs1,240-crore

Manganese Ore India Ltd (MOIL), the country's largest producer of manganese ore, is expected to sell shares at the top end of the IPO band of Rs375, to raise around Rs1,240 crore ($274 million).

The group of ministers that overseas divestments in state-run firms has set the issue price of MOIL's initial public offer (IPO) at the top end of its Rs340-375 share price band, official sources said today.

The price is expected to be announced over the next few days.

Nagpur, Maharashtra-based MOIL is selling 20 per cent of its stock with the central and two state governments of Maharashtra and Madhya Pradesh diluting their stake. The centre is selling 10 per cent equity in MOIL while the two state governments are selling 5 per cent each.

MOIL's IPO was covered 56 times the shares on offer with bids received for at least Rs64,000 crore of stock by the time the IPO closed for subscription on 1 December.

Retail investors and employees of MOIL will get a 5 per cent discount to the sale price of the stock.