The equity capital as on 31.03.09 is Rs. 8,245.50 crores.
5% of this amount would be Rs. 412.275 crores. By selling this quantity, the Government wants to raise Rs. 8,000 crores says the Disinvestment Secretary, GOI.
So, by inference, the share price would be around 8000 divided by 412.275. A simple calculation should the result as 194+.
The share price could be anywhere between 190 and 200 depending on the advice given by the financial managers of the issue.
I however feel a price of Rs. 175 would be fair, with a 5% discount for retail investers, as has been done in the past in some prominent public issues.
| NIFTY 
