The government on Wednesday fixed a floor price of Rs 185 per share for the ensuing public offer of Gas Authority of India Ltd.

Announcing the floor price, divestment secretary Dhirender Singh said retail investors would be eligible for discount of five per cent over the price offered to the institutional bidders.

The GAIL public offer entailing 8.45 crore (84.5 million) shares is slated to open on February 27 and close on March 5.

GAIL scrip closed at Rs 196 on BSE down by five per cent over Thursday's close.

However, when asked whether the government was concerned over the five per cent dip in scrip prices, Singh said, "No we are not concerned, the market will stabilize."

The government proposes to dilute ten per cent stake in the gas major thereby bringing down its stake to 56 per cent.

GAIL is the fifth public offer made by government following IPCL, CMC, IBP and Dredging, bidding for which are currently underway.