Government's offer of sale of 10 per cent stake in public sector Oil India (OIL) today was over-subscribed more than two times. According to data from the National Stock Exchange (NSE) the government now expects 3,113.80 croreRs from its third divestment in the current fiscal year ending March 31, 2013.

According to stock exchange data,the auction, which started in the morning, drew bids for over 15.40 crore shares ,against an offer of over 6.01 crore. It saw widespread participation from foreign institutional investors, mutual funds, non-institutional and retail investors.

The Department of Divestment expects the proceeds to go up as the allocation will be on a price priority basis.

The government had fixed the floor price at 510 rupees a piece, a 5.6 per cent discount to its Thursday closing price of Rs. 540.

Shares of OIL ended at Rs. 525.8, down 2.69 per cent from its previous close, on the NSE.

The government holds a 78.43 per cent stake in the company which will fall to 68.43 per cent after the disinvestment. OIL's paid-up capital as on March 2012 was Rs. 601 crore.