IOC stock offer gets poor response from retail investors

ioclWith the market showing extreme volatility, the Indian Oil Corporation’s offer for sale of 24.3 cr shares did not get adequate response from retail investors.

Though 20% of the offer was exclusively reserved for retail investors, the company managed to get subscriptions for only about one-fifth of this quota.

A 5% discount was also offered to retail investors.

On the other hand, the institutional part was subscribed to the extent of 143%. It is expected that the Life Insurance Corporation of India, controlled by the government, may have eased the pain in this department by bidding for shares.

Total subscription was worth Rs 11,107 crores, and final oversubscription was 18%. With this disinvestment, the Government of India shares in IOCL will come down to 58.57%.

This was the third disinvestment under the new SEBI Rules allowing the Notice Period to include banking day in addition to a trading day.

Overall, this was the fourth disinvestment for the fiscal year 2015-16.