Feb 25 (Reuters) – India will not exercise the oversubscription option for the Indian Railway Finance Corp offer-for-sale after the base offer did not receive full bids on the first day, an exchange filing showed on Wednesday.
Here are some details:
* India said on Tuesday it would divest an up to 4% stake inIndian Railway Finance Corp through an offer-for-sale, includinga 2% base offer and an additional 2% via the oversubscriptionoption. * The Indian government currently owns an 86.36% stake inthe financing arm of the Indian Railways. * The floor price for the OFS was set at 104 rupees,implying a 5% discount to the stock’s closing price on Tuesday. * The oversubscription option allows the seller topotentially sell more shares than the base offer if investordemand is higher than expected. * The sale opened on Wednesday to non-retail investors andrecorded an under-subscription of 11.8 million shares for thebase issue. * The government said the total offer size would remain thesame as the base offer size of a 2% stake. * Of the offer size, 14.52% will be available for bids byretail investors on Thursday.
(Reporting by Mridula Kumar and Nishit Navin in Bengaluru; Editing by Shilpi Majumdar)