Ircon International share price fell over 7 per cent on Wednesday as the government is going to divest its 10 per cent stake of the company through offer for sale (OFS). The government, which holds 89.18 per cent stake in IRCON, has proposed to sell up to 16 per cent in the state-owned company at a floor price of Rs 88 per share. At the floor price, a 16 per cent stake sell would fetch over Rs 600 crore to the exchequer.
Weighed down by government's stake sale plan, Ircon International shares opened sharply lower at Rs 93 against previous closing price of Rs 97.85. During the day's trade so far, the stock declined as much as 7.4 per cent to hit intraday low of Rs 90.60 amid heavy volume. The market cap of Railway PSU fell to Rs 4,312.26 crore.
On the volume front, there was surge in selling as 5.06 lakh shares changed hands over the counter as compared to two-week average volume of 1.49 lakh shares.
The OFS in IRCON opens today for non retail investors, while the widow for retail investors will open tomorrow.
The base issue size of the OFS is 10 per cent or over 4.70 crore equity shares, with a green-shoe option to retain over-subscription of 6 per cent or over 2.82 crore shares. Overall, the total issue size, including green-shoe option, is 16 per cent or over 7.52 crore shares.
The government has set a disinvestment target of Rs 32,000 crore in the revised estimates for the current fiscal. So far, it has raised Rs 20,626 crore through minority stake sale in CPSEs and share buy backs.
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