Govt to divest 8% stake in IRCON, floor price set at ₹154 per share

The offer for sale (OFS) for up to an 8% government stake in the railway public sector undertaking IRCON will open on Thursday. The floor price for the IRCON OFS would be ₹154 per equity share, the rail PSU said in a regulatory filing.

Shares of IRCON closed at ₹172, down 0.81% on the NSE. The floor price of ₹154 is at a discount of over 10% from Wednesday’s closing price. So far this year, IRCON stock price has surged 190%.

At the floor price of Rs 154, an 8% stake would fetch the government over ₹1,200 crore. The government currently holds a 73.18% stake in IRCON, which is under the Railways Ministry and in the construction of transportation infrastructure.

The base issue size of the OFS is 4%, or over 3,76,20,629 equity shares, with a green-shoe option to retain an over-subscription of 4%, or 3,76,20,629 shares.

The total issue size, including the green-shoe option, comes to 8%, or over 7,52,41,258 shares.

Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey on Wednesday, “Offer for Sale in IRCON opens tomorrow for non-retail investors. Retail investors can bid on Friday. Govt. would divest 8% equity including Green Shoe option.”

Reference

Omprakash Tiwary

Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.

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