Govt to raise ₹1,200 crore by selling 8% stake in IRCON via OFS; floor price set at ₹154/share | Mint
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Business News/ Markets / Stock Markets/  Govt to raise 1,200 crore by selling 8% stake in IRCON via OFS; floor price set at 154/share
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Govt to raise ₹1,200 crore by selling 8% stake in IRCON via OFS; floor price set at ₹154/share

The central government owns 73.18% in IRCON International, and 8% stake sale will help it raise about ₹1,159 crore.

Established in 1976, IRCON International is the second railways firm which is being divested.Premium
Established in 1976, IRCON International is the second railways firm which is being divested.

The central government is planning to sell up to 8% stake in IRCON International through an offer for sale (OFS). The floor price was fixed at 154 per share, the engineering and construction company said in a stock exchange filing on Wednesday.

The government owns 73.18% in the company, and the 8% stake sale will help it raise about 1,159 crore.

According to the plan, the government will sell 4% of the company shares. Moreover, an additional 4% would be sold if the offer is oversubscribed.

Also Read: Defence, railway stocks surge after BJP's state election victory; HAL, BEL, Ircon hit 52-week high

The floor price for the sale has been set at 154 a share, which is a discount of about 10.5% to the stock's closing price on Wednesday. 

Also read: Ircon International Q2 results: Net profit increases by 44% to 251 crore

So far, the government has collected 8,859 crore by selling shares in public sector units in 2023/24, compared with a target of 51,000 crore.

Also Read: IRCON International and RITES soar up to 7.2% after receiving 'Navratna' status

IRCON OFS: Closing and opening date

The offer will take place on a separate window of the stock exchanges under the T+1 period. The OFS will take place between 9:15 am and 3:30 pm on December 7, 2023 (T Day). It will continue the next day as well during the same time.

Only non-retail investors would be able to place their bids on December 7, ie T Day. “While placing their bids, non-retail investors may indicate their willingness to carry forward their unallotted bids to T+l Day for allocation to them in the unsubscribed portion of Retail Category," said the company in its exchange filing. 

The non-retail Investors who have placed their bids on December 7 and have chosen to carry forward their unallotted bids to December 8 (T+l Day), will be allowed to carry forward for allocation to them in the unsubscribed portion of the Retail Category and also revise their bids on T+l.

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Published: 06 Dec 2023, 07:13 PM IST
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