Unlike in the Coal India Limited (CIL) case, where employees showed lacklustre response to the initial public offer (IPO), the Manganese Ore India Limited (Moil) employees seem rather enthusiastic about getting an equity stake in their organisation. Out of 6,750 employees in this company, over 2,200 have opened fresh demat accounts to apply for the IPO.
Most of these employees are posted in the mines and are totally ignorant about the stock markets. As the management carries out a drive, all they say is that the shares will be of great help during a rainy day. Almost 6,000 of Moil's workforce is posted in the mines, with over 4,000 of them being manual workers getting salary on piece-rate basis.
"I have already purchased the shares," said Raghunath Neware, at Kandri Mines near Ramtek. A Moil workers since 22 years, Neware like many others has opened a demat account for the first time.
The Moil employees seem to have also taken a lesson from the CIL IPO, which listed with a hefty premium day after its IPO. However, CIL employees had lost out on this opportunity, because most of them did not buy the shares reserved for them by the company.
"Whatever ups and downs the markets may see, I know that Moil's shares will not ebb, we have faith in the company," says Ashok Baliram Chavan, a driver who is also otherwise not conversant with the complexities of the stock markets.
This is a long-term investment, and his children will reap the benefits of the share, says Chavan, a second generation mine worker. "Even my father worked in these mines but those days one can hardly save enough. There was a time when even loose change mattered, with the average daily earning of a miner being not more than Rs 5. I still have a gold-coated 20 paise coin as a reminder of those days," he says.
Most miners in this public sector company are from the nearby areas, with almost 2-3 generations of their families being in the same profession.
"Work in the mines is back breaking indeed, which includes loading the ore as well as breaking it into pieces. Though a basic salary is fixed, one has to put in the optimum effort to ensure a sizeable wage, which is paid on the quantum of work done. The work is so exhausting that a person has aged by the time he reaches 40, and is eventually posted to other jobs. Owing to the strenuous physical labour, drinking is a common vice among miners," says a worker.
The management expects that more workers would open demat accounts to benefit from the company's listing. "There is still time for the IPO and it is expected that more fresh accounts are opened," said a director in the company. The company has reserved 2% shares for employees out of the 3.36 crore shares to be issued to the public. It is expected that the individual retail investment may be capped at Rs 1 lakh.
The price band is expected to be announced by November 23 and the IPO launched a week later. The value of the company's assets has been calculated at 100 times the share face value at Rs 10.
Most of these employees are posted in the mines and are totally ignorant about the stock markets. As the management carries out a drive, all they say is that the shares will be of great help during a rainy day. Almost 6,000 of Moil's workforce is posted in the mines, with over 4,000 of them being manual workers getting salary on piece-rate basis.
"I have already purchased the shares," said Raghunath Neware, at Kandri Mines near Ramtek. A Moil workers since 22 years, Neware like many others has opened a demat account for the first time.
The Moil employees seem to have also taken a lesson from the CIL IPO, which listed with a hefty premium day after its IPO. However, CIL employees had lost out on this opportunity, because most of them did not buy the shares reserved for them by the company.
"Whatever ups and downs the markets may see, I know that Moil's shares will not ebb, we have faith in the company," says Ashok Baliram Chavan, a driver who is also otherwise not conversant with the complexities of the stock markets.
This is a long-term investment, and his children will reap the benefits of the share, says Chavan, a second generation mine worker. "Even my father worked in these mines but those days one can hardly save enough. There was a time when even loose change mattered, with the average daily earning of a miner being not more than Rs 5. I still have a gold-coated 20 paise coin as a reminder of those days," he says.
Most miners in this public sector company are from the nearby areas, with almost 2-3 generations of their families being in the same profession.
"Work in the mines is back breaking indeed, which includes loading the ore as well as breaking it into pieces. Though a basic salary is fixed, one has to put in the optimum effort to ensure a sizeable wage, which is paid on the quantum of work done. The work is so exhausting that a person has aged by the time he reaches 40, and is eventually posted to other jobs. Owing to the strenuous physical labour, drinking is a common vice among miners," says a worker.
The management expects that more workers would open demat accounts to benefit from the company's listing. "There is still time for the IPO and it is expected that more fresh accounts are opened," said a director in the company. The company has reserved 2% shares for employees out of the 3.36 crore shares to be issued to the public. It is expected that the individual retail investment may be capped at Rs 1 lakh.
The price band is expected to be announced by November 23 and the IPO launched a week later. The value of the company's assets has been calculated at 100 times the share face value at Rs 10.
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