The Hindu : Govt. fixes floor price for GAIL public offer

Online edition of India's National Newspaper
Thursday, Feb 26, 2004

Business

Business

Govt. fixes floor price for GAIL public offer

NEW DELHI, FEB. 25. The Central Government today fixed a floor price of Rs. 185 per share for the forthcoming GAIL public offer and offered a 5 per cent discount to retail investors.

Announcing the floor price, the Disinvestment Secretary, Dhirender Singh, said retail investors would be eligible for discount of 5 per cent over the price offered to institutional bidders.

The GAIL public offer entailing 8.45 crore shares is slated to open on February 27 and close on March 5.

GAIL scrip closed at Rs. 196 on the Bombay Stock Exchange down by 5 per cent over yesterday's close.

However, when asked whether the Government was concerned over the 5 per cent dip in scrip prices, Mr. Singh said "no we are not concerned, market will stabilise".

The Government proposes to dilute 10 per cent stake in the gas major thereby bringing down its stake to 56 per cent. GAIL is the fifth public offer made by the Government following IPCL, CMC, IBP and Dredging, bidding for which are now under way. The Government hopes to rake in about Rs. 15,000 crores through six public offers including ONGC, which is slated to hit the market next week.

PTI

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