IRCON International shares decline over 7 pc on govts stake sale announcement

Shares of IRCON International Ltd on Wednesday slipped over 7 per cent in early trade after the government announced its plan to pare its stake in the railway PSU.

On BSE, the scrip slid 7.4 per cent to Rs 90.6.

At the NSE, the shares were trading 7.45 per cent lower at Rs 90.6.

Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey on Tuesday tweeted: “Offer for Sale in IRCON opens tomorrow for Non Retail Investors. Day 2 for Retail Investors. Govt. would divest 10% equity with an additional  6% as Green Shoe option”.

The offer for sale (OFS) for up to 16 per cent government stake at a floor price of Rs 88 per share in IRCON will open on Wednesday, as per a regulatory filing of the firm on Tuesday.

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.

The total issue size, including green-shoe option, comes to 16 per cent or over 7.52 crore shares.

The government holds 89.18 per cent stake in IRCON, which is under the Railways Ministry and into construction of transportation infrastructure.

At the floor price, a 16 per cent stake would fetch over Rs 600 crore to the exchequer.

(Except for the headline, this story has not been edited by The Federal staff and is auto-published from a syndicated feed.)