Ircon International Shares Dip 8% as Government Plans Rs 1,100 Crore Stake Sale through OFS

7 Dec 2023 , 10:47 AM

Ircon International’s shares drop nearly 8% as the government plans to sell an 8% stake, equivalent to 7.52 crore equity shares, through an offer-for-sale (OFS) on December 7-8.

The OFS has a floor price of Rs 154 per share, consisting of a base issue size of 4% and a greenshoe option of 4%. Non-retail investors can participate on December 7, while retail investors can join on December 8. If fully subscribed, the OFS could generate about Rs 1,100 crore for the government.

At the time of writing, Ircon shares are trading 7% lower at Rs 159.40 on the National Stock Exchange. Retail investors have a 10% reservation, and if undersubscribed, the shares will be allotted to non-retail investors who carry forward their unallotted bids to T+1 day.

A 0.5% reservation is set for employees, and the shares will be given at the cut-off price in the retail category. Employees can apply for equity shares up to Rs 2 lakh, with the unsubscribed portion potentially allotted on a proportionate basis.

Ircon International is an engineering and construction corporation specializing in transport infrastructure, with the government currently holding a 73.18% stake in the company.

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