Buoyed by an overwhelming 11.3 times over-subscription for the public offer to sell its 39.7 lakh (3.97 million) shares in CMC, the government on Monday fixed a selling price of Rs 485 per share to mop up Rs 190 crore (Rs 1,900 million), while declaring a concessional price of Rs 460.75 per share for retail investors.

Sources associated with the process said 50 per cent of the issue was allocated to retail and non-institutional investors, while the balance was given to qualified institutional buyers.

The government received bids for 44.9 million shares against about 3.98 million shares on offer.

The allotment of shares to the successful bidders would commence from today.

The public offer for 39,76,374 shares constitutes government's 26.2 per cent residual stake in the IT major.

The government had fixed a floor price of Rs 475 per share for the public offer, bids for which closed over the weekend.

HSBC Securities and Capital Markets and Enam Financial Consultants were the book building lead managers to the issue.

Tata group had acquired 51 per cent majority stake in the company from the government in November 2001 for Rs 151 crore (Rs 1,510 million) at Rs 197 per share. However, a subsequent open offer attracted a lukewarm response.

CMC is the second public issue to close after IPCL, which received an overwhelming response with investors bidding 4.8 times the offer size of 7.18 crore (71.8 million) shares.

Bids for IBP are also slated to close today followed by Dredging Corporation on March 4 and GAIL on March 5. Public offer for the shares of ONGC shares would commence on March 5.