Shares of IRCON International Ltd. on Wednesday closed with more than 7% losses after the government announced its plan to pare stake in the railway entity. On BSE, the scrip dived 6.9% to close at ₹91.1. On the National Stock Exchange, the shares ended 7.25% lower at ₹90.8.
DIPAM Secretary Tuhin Kanta Pandey on Tuesday tweeted: “Offer for Sale in IRCON opens tomorrow for Non Retail Investors. Day 2 for Retail Investors.”
The offer for sale (OFS) for up to 16% government stake at a floor price of ₹88 per share in IRCON will open on Wednesday, as per a regulatory filing by the company on Tuesday.
ADVERTISEMENT
The base issue size of the OFS is 10% or more than 4.70 crore equity shares, with a green-shoe option to retain over-subscription of 6% or more than 2.82 crore shares. The total issue size, including green-shoe option, comes to 16 per cent or over 7.52 crore shares. The Centre holds 89.18% stake in IRCON, which is into construction of transportation infrastructure. At the floor price, a 16% stake would fetch more than ₹600 crore for the exchequer.