The shares of IRCON International experienced a nearly 8 percent decline in intra-day trade. The central government has announced plans to divest up to 8% of its stake in IRCON International through an offer for sale (OFS), as revealed in a stock exchange filing on Wednesday. The floor price for the offering has been fixed at ₹154 per share.
Presently, the government holds a 73.18% stake in IRCON International. The envisaged 8% stake sale is expected to generate approximately ₹1,159 crore in funds. The government plans to initiate the sale by offering 4% of the company’s shares initially, with an additional 4% being contingent upon oversubscription.
As part of its broader disinvestment strategy, the government has accumulated ₹8,859 crore through share sales in public sector units during the fiscal year 2023/24, falling short of the targeted ₹51,000 crore.
The OFS is scheduled to take place through a dedicated window on the stock exchanges during the T+1 period. The offering is set for December 7, 2023 (T Day), from 9:15 am to 3:30 pm, continuing during the same hours on the subsequent day.
It’s noteworthy that only non-retail investors will be eligible to place their bids on T Day. IRCON, in its exchange filing, stated that non-retail investors may indicate their willingness to carry forward unallotted bids to T+1 Day for potential allocation in the unsubscribed portion of the Retail Category.
