The government is understood to have fixed an offer price of Rs 400 per share for sale of 5.6 million shares through public offer route in Dredging Corporation, where it expects to mop up Rs 190 crore (Rs 1.9 billion).

Retail investors would get 50 per cent of the shares while qualified institutional buyers would get the other half, sources associated with deal said.

Retail investors would be offered a five per cent discount over institutional bidders.

The offer for 56 lakh (5.6 million) shares constituting government's 20 per cent stake in the company was oversubscribed 18 times when the issue closed on Thursday.

Post offer, government holding would come down to 78 per cent from the present 98 per cent.

Kotak Mahindra Capital Company and Enam Financial Consultants were the lead managers to the 100 per cent book building issue.

A price band of Rs 385-400 per share was stipulated by the government for the offer.

Dredging Corporation is one of the six companies where the government is divesting equity to the public, hoping to raise a massive Rs 14,500 crore (Rs 145 billion) this fiscal.

The government has already mopped up over Rs 1700 crore (Rs 17 billion) through sale of residual equity in IPCL, CMC and IBP issues, which closed recently.