 "Govt to sell up to 16% stake in IRCON via OFS, issue opens Wednesday")
The offer for sale (OFS) for up to 16 per cent government stake at a floor price of Rs 88 per share in railway PSU IRCON will open on Wednesday.
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.
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".
In a regulatory filing to stock exchanges, IRCON said the floor price for the offer shall be Rs 88 per equity share.
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At the floor price, a 16 per cent stake would fetch over Rs 600 crore to the exchequer.
Shares of IRCON closed at Rs 97.85, up 1.87 per cent over the previous close on the BSE. The floor price of Rs 88 is at a 10 per cent discount over Monday's closing market price of IRCON.
The government has set a disinvestment target of Rs 32,000 crore in the Revised Estimates for the current fiscal. So far, it has realised Rs 20,626 crore through minority stake sale in CPSEs and share buy backs.