Govt to get Rs 190 cr from CMC

The government would get Rs 190 crore from the sale of 39.8 lakh shares in CMC as it announced the sale price of Rs 485 a share for the public offer that was oversubscribed 11.3 times. Retail investors would be allotted the share at a discounted price of Rs 460.75. Successful closure of CMC issue is the second of the six public offers by the government in three days after IPCL to take the kitty at Rs 1,390 crore. For this government fixed the selling price of Rs 485 per share against the floor price of Rs 475 announced ahead of the public offer.

Enthused by an overwhelming response of retail investors (those bidding for amounts up to Rs 50,000) whose bids totalled about six million against 32 millions of qualified institutional buyers, the government is confident about the success of IBP issue which closed on Monday with oversubscription by 2.25 times. Government has earmarked 25 per cent of the allotment, beginning Monday, for retail investors while another 25 per cent has been kept for individual investors.