Ircon share price slumps over 8% on day 1 of OFS; government to divest up to 8% stake | Mint
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Business News/ Markets / Stock Markets/  Ircon share price slumps over 8% on day 1 of OFS; government to divest up to 8% stake
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Ircon share price slumps over 8% on day 1 of OFS; government to divest up to 8% stake

Ircon share price today opened at ₹157.95 apiece on BSE. This year so far, Ircon Intl share price jumped by 179%. Ircon share price touched an intraday low of ₹157.50 and an intraday high of ₹159.90.

Ircon share price today opened at ₹157.95 apiece on BSE. This year so far, Ircon Intl share price jumped by 179%.Premium
Ircon share price today opened at 157.95 apiece on BSE. This year so far, Ircon Intl share price jumped by 179%.

Ircon International share price slumped over 8% on Thursday's session following the opening of the two-day offer for sale (OFS) today. The engineering and construction company said in an exchange filing on Wednesday that the central government plans to sell up to 8% of its stake in IRCON International through an OFS, with a floor price set at 154 per share, as previously reported by Mint.

The company, of which the government owns 73.18%, will raise approximately 1,159 crore with the sale of its 8% stake. The plan calls for the government to sell 4 percent of the company's shares. In addition, 4% more would be sold in the event that the offer is exceeded. Ircon share price today opened at 157.95 apiece on BSE. This year so far, Ircon Intl share price jumped by 179%. Ircon share price touched an intraday low of 157.50 and an intraday high of 159.90.

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According to Rajesh Bhosale, Equity Technical and Derivative Analyst, Angel One, Ircon has been an outperformer, but today it is under pressure and down 7%. The volumes as well are high in this weakness, hence traders should avoid it as of now and wait for it to settle. The next support is at 150, and 175 is resistance.

Also Read: Govt to raise 1,200 crore by selling 8% stake in IRCON via OFS; floor price set at 154/share

Under the T+1 period, the offer will take place on a different window of the stock exchanges. On December 7, 2023 (T Day), the OFS will take place from 9:15 a.m. to 3:30 p.m. It will resume at the same time the following day.

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.

Also Read: Paytm hits 20% lower circuit on brokerage downgrades as company decides to cut down on small ticket loans

Non-retail Investors who submitted their bids on December 7 and opted to carry over their unallotted bids until December 8 (T+1 Day) will be permitted to do so for allocation in the unsubscribed section of the Retail Category. They will also be permitted to revise their bids on T+1.

Ircon International reported a 44% rise in its net profit to 250.8 crore in the September quarter of FY24, against a net profit of 174.2 crore in the year-ago period.

Also Read: Adani Ports share price climbs 3%; Motilal Oswal, Kotak positive on stock

Its consolidated total income increased to 3,136.3 crore in the second quarter of the ongoing fiscal from 2,305.9 crore in the same quarter last year. The total order book of the company stood at 32,152 crore as on September 30, according to its BSE filing. IRCON is engaged in the railways and highways sectors and comes under the Ministry of Railways.

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

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions. 

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Published: 07 Dec 2023, 11:30 AM IST
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