IBP issue floor price at Rs 620, CMC for Rs 475

Unlike in the case of IPCL, the strategic partners ie, IOC in the case of IBP and Tatas in the case of CMC, have not been offered any additional equity in the public offer. In IPCL issue, Reliance was offered 5 per cent additional equity to raise its stake to 51 per cent.

The floor price for IBP at Rs 620 is substantially lower than the Rs 1,551 a share paid by IOC to government for acquiring 33.6 per cent equity for a total consideration of Rs 1153.68 crore. However, in the case of CMC, the floor price is substantially higher than Rs 197 per share paid by Tata Sons for acquiring strategic control.

Singh said government would sell its remaining 26.2 percent equity or 39.76 lakh shares in CMC and 57.58 lakh shares in IBP which comprises 26 per cent equity. He said government had decided to go for a fixed floor price, instead of a price band. “We are following the same principle as in IPCL,” he said.

The retail bidders, in both the cases, would be eligible for a 5 per cent differential lower price compared to the offer price established for qualified institutional buyers and non-institutional bidders, through the book building route. While the CMC public offer would open on February 23 and close on February 28, the IBP issue would open on February 23 and close on March 1.