MUMBAI (Reuters) - Indian construction company Ashoka Buildcon has raised 5 billion rupees ($80.3 million) from a share sale to institutional investors, two sources directly involved in the deal told Reuters.

Demand for the shares hit 6.5 billion rupees, with investors including Singapore-based fund GMO, ICICI Prudential and Morgan Stanley, the sources added.

The share sale was launched at an indicative price of 175.80 rupees per share, a discount of about 9 percent to Monday's closing price of 193.15 rupees a shares on the National Stock Exchange of India, a term sheet seen by Reuters shows.

Axis Bank, ICICI Securities, IDFC Securities and Macquarie Capital were the managers of the issue.

India's stock market has seen a number of share sales from small companies, looking to pay debt and expand as the economy recovers.

($1 = 62.3006 Indian rupees)

(Reporting by Abhishek Vishnoi, editing by Louise Heavens)