LIC buys 90 per cent of Indian Oil shares, stake went up to 11.11 per cent
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The insurer bought as many as 20.87 crore shares or 8.59 per cent of
The government had yesterday announced that its biggest disinvestment of the fiscal was subscribed 1.18 times.
IOC listed "OFS and Open Market" as the mode of LIC's acquisition done on August 24.
The government had offered 24.28 crore shares for sale through the OFS whose floor or minimum bid price was set at Rs 387 apiece.
While overall, the issue was subscribed by 1.18 times the retail investors picked up less than one-fifth of their quota on a day when global meltdown wiped away a massive 1,624 points or nearly 6 per cent from the benchmark BSE Sensex.
IOC shares dipped to Rs 378 on Monday as against the auction floor price of Rs 387.
Together with three other disinvestments since April, the government has mopped up over Rs 12,600 crore, or a little less than one-fifth of the yearly target of Rs 69,500 crore.
The stake sale had managed to get total bids for Rs 11,107 crore for 28.74 crore shares, against offer of 24.28 crore shares.
Retail investors, who are offered shares at 5 per cent discount, i.e. Rs 367.65, picked up only 18 per cent of their quota of 4.85 crore shares.
Institutional investors put in bids for 27.85 crore shares or 1.43 times the 19.42 crore shares reserved for them.
Asked if LIC was asked to bail out the stake sale, Johri had yesterday stated that "Calls are made to all investors. Right along the line calls are made to every investor by us, by our merchant bankers in a situation of crisis like this to every actor. We even spoke to stock exchanges".
(Image credits: securenow)