Oil India's offer for sale got a good response today as the issue was subscribed more than two times.
With just a few minutes to the closing of the offer, the company received bids for 14.16 crore shares against an offer for sale of 6.01 crore shares.
It received bids for 6.80 crore shares with 100 per cent margin and 7.35 crore shares with zero per cent margin.
Bids that came in with zero per cent can revise the price only upwards while they have no option to modify the price/quantity downwards or cancel the orders.
Recently, market regulator SEBI modified the guidelines for offer for sale mechanism or auction route wherein orders made by institutional investors without paying upfront margin, cannot be modified or cancelled, "except for making upward revision in the price or quantity".
But it retained the 100 per cent margin class, where bidders were allowed to modify or cancel their orders till last minute.
The indicative price (weighted average price) is Rs 517.80 while the stock is quoting at Rs 523.55.
The company fixed the floor price at Rs 510 a share. To make the OFS process more transparent, SEBI has said that indicative price of the offer should be disclosed throughout the trading session and the same should be calculated on the basis of "all valid bids/orders".
"Settlement shall take place on trade for trade basis. For non-institutional orders/bids and for institutional orders with 100 per cent margin, settlement shall take place on T+1 day," the circular said.
The Government plans to raise Rs 3,065 crore through the offer.