Government's stake sale in MOIL begins; shares tumble by 2.44%

Ministry of Steel on Tuesday commenced the selling of 10% stake in its manganese ore arm MOIL via offer for sale (OFS) issue. 

The government will sell up to 1,33,18,780 equity shares of MOIL at a floor price of Rs 365 per piece aggregating amount over Rs 486 crore. 

On Tuesday, the trading window will be open only for non-retail investors. 

The issue will close on January 25, 2017 for both retail and non-retail investors. 

Retail investors will be allocated offer shares at  a discount of 5% to the Cut-off price in accordance with the OFS guidelines. 

The discounted price, which shall be the final allocation price to the Retail investors, may be below the floor price.

Shares of MOIL were trading at Rs 373.35 per share on BSE, down by Rs 9.35 or 2.44% at 11.02 am.