Financial Daily from THE HINDU group of publications
Tuesday, Mar 02, 2004
Financial Daily from THE HINDU group of publications Tuesday, Mar 02, 2004 |
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Public Offer Markets - Public Offer Industry & Economy - Disinvestment CMC cut-off price fixed at Rs 485 — Rs460.75 for retail investors Our Bureau
New Delhi , March 1 THE Government on Monday finalised an offer price of Rs 485 per share for the public issue of its residual equity in Tatas-controlled CMC Ltd. The retail investors would be allotted shares at Rs 460.75 per share, a five per cent discount to the final offer price of Rs 485 per share, the Disinvestment Ministry announced in a statement here. The shares of CMC Ltd are currently traded at about Rs 564 per share in the market. The Government has mopped up Rs 190 crore through the sale of its residual equity of 26.25 per cent in CMC Ltd. The public offer was oversubscribed by 11.3 times with the Government receiving subscriptions for 44.9 million shares as against the 3.98 million shares, which was offered to the public through a 100 per cent book-built route. Out of the total offer, 50 per cent of the shares would be allocated to retail and non-institutional investors, while the balance 50 per cent would be given to qualified institutional buyers. The process of actual allotment to investors started from today. Out of the 50 per cent shares being allotted to retail and non-institutional investors, 25 per cent would be allotted to retail investors bidding for amounts up to Rs 50,000 while another 25 per cent would be given to retail investors bidding for amounts upwards of Rs 50,000. The Government had set a floor price of Rs 475 per share for the public offer which closed on February 28. HSBC Securities and Capital Markets and Enam Financial Consultants were appointed the book running lead managers for the public offer. The Government has thus mobilised Rs 1,390 crore through sale of its residual equity in IPCL and CMC Ltd The sale of residual shares in IPCL had fetched the Government Rs 1,200 crore last week. In November 2001, the Tata Group had acquired a 51 per cent controlling stake in CMC Ltd for Rs 151 crore at Rs 197 per share. Besides IPCL and CMC Ltd, the Government is selling its residual equity in IBP Co Ltd through a public issue of 5.7 million shares. It is also offloading a 10 per cent stake each in GAIL and ONGC in the market and divest about 20 per cent stake in the state-owned Dredging Corporation of India The GAIL public issue, which opened on February 27, will close on March 5, while the ONGC public offer is scheduled to open on March 5.
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