Gail issue price seen at Rs 195/share

The government is expected to mop up over Rs 1,628 crore from the sale of its 10 per cent stake in gas firm Gail (India) Ltd with the book runners of the public issue favouring a issue price of Rs 195 per share.

Retail investors will get a five per cent discount (Rs 185.25 a share). The public issue of 8.4 crore shares, which closed on Friday, was over-subscribed by 9.28 times, sources associated with the process said.

The government had fixed a floor price of Rs 185 per share for the public issue done through the book building route.

The Gail scrip closed at Rs 214.70 on the Bombay Stock Exchange on Friday.