The government commenced divestment of approximately 16% in
IRCON International through an offer for sale (OFS) which begins from today onward. The offer will continue till March 04, 2021.
The base offer size involves the sale of 4,70,25,787 equity shares of the IRCON which comprises of 10% stake held by the government. Further, the Centre has an 'Oversubscription Option' to carry additional sale of about 2,82,15,473 equity shares which consists of a 6% stake of the IRCON.
Notably, IRCON said that such a number of equity shares would be equivalent to up to 5% of the offer shares that may be offered to eligible employees of the company after completion of the Offer. The eligible employees may apply for equity shares amounting to Rs5 lakh.
Overall, the Centre plans to offload a 16% stake of IRCON. The President of India, acting through and represented by the Ministry of Railways, Government of India, is the promoter of IRCON.
The offer is available for non-retail investors today. Further, retail investors and non-retail investors who choose to carry forward their un-allotted bids will be able to subscribe to the Offer tomorrow.
A floor price of Rs88 per equity share has been set on the IRCON offer for sale.
At around 1.02 pm, IRCON trades at Rs91.70 per piece down by 6.3% on Sensex. The stock has tumbled to an intraday low of Rs90.60 per piece on the index.