Govt to raise ₹1,200 crore by selling 8% stake in IRCON via OFS; floor price set at ₹154/share

The central government intends to sell up to 8% of its stake in IRCON International via an offer for sale (OFS). The engineering and construction firm stated in a stock exchange filing on Wednesday that the floor price was set at 154 per share.

The government controls 73.18% of the company, and the 8% stake sale will raise around Rs. 1,159 crore.

The government intends to sell 4% of the company's stock, according to the plan. Furthermore, if the offer is oversubscribed, an extra 4% will be sold.

The sale's floor price has been set at 154 per share, a 10.5% reduction to the stock's closing price on Wednesday. 

So far, the government has collected 8,859 crore through the sale of shares in public sector units in 2023/24, against a target of 51,000 crore.

IRCON OFS: Closing and opening date

The offer will take place on a separate stock market window during the T+1 period. The OFS will take place on December 7, 2023 (T Day) between 9:15 a.m. and 3:30 p.m. It will be repeated the following day at the same hour.

Only non-retail investors would be permitted to put bids on December 7, also known as T Day. "While placing their bids, non-retail investors may indicate their willingness to carry forward their unallotted bids to T+l Day for allocation to them in the unsubscribed portion of Retail Category," said T+l Day in its filing with the exchange. 

Non-retail investors who filed bids on December 7 and elected to carry forward their unallotted offers to December 8 (T+l Day) will be able to carry forward for allocation in the unsubscribed section of the Retail Category and modify their bids on T+l.