The government on Wednesday fixed a floor price of Rs 170 per share for IPCL, and decided to offer five per cent discount to retail investors in the ensuing public offer slated to hit the market on February 20.
The lower end of the price band for public issue through book building route, has been fixed at Rs 170 per share and there is no cap in the band, divestment secretary, Dhirendra Singh said.
The Divestment Development: Complete Coverage
The government has also decided to have a differential pricing in favour of retail investors by offering a discount of five per cent, he said.
The fair value of shares being offered to Reliance has been fixed at Rs 195 per share.
The roadshows for IPCL were flagged-off on Tuesday in Mumbai, and the public offering of the company, now managed by Reliance, would open on February 20.
After selling its 26 per cent equity to Reliance Industries Ltd in 2002 for Rs 1491 crore (Rs 231 per share), the government now holds about 33.95 per cent stake in IPCL.
Of the residual stake, about five per cent would be given to employees, while the remaining 29 per cent stake would be offloaded in the market.
