Indian Affairs

Govt to sell up to 16% stake in IRCON via OFS, issue opened Wednesday

New Delhi- On March 3′ 2021, the Union Government plans to sell up to 16% of its states in IRCON through OFS (offer for sale), stated by the new offer issued today. The OFS for this stake has been set up to the floor price of rupees 88 per share in railway PSU IRCON. 

The public sector is undergoing several changes and finding new ways to function while benefiting the national and marketplace. As with the new issue by Union Government gave awestruck to all, and especially in the international marketplaces. 

Also, the base issue size of the OFS is around 10% or over 4.70 crore equity shares with a greenshoe option to retain an oversubscription of 2.82 crore shares or 6%. Whereas talking about the total issue size including green-shoe option it comes to 16 percent of above 7.52 crores shares. Under the Railways Ministry and area of construction of transportation infrastructure for the nation, the Indian government holds up to 89.18 percent stake in IRCON. 

Moreover, on Tuesday, 2nd March, DIPAM (Department of Investment and Public Affairs Management) Secretary Tuhin Kanta Pandey said in one of his tweets- “OFS (offer for sale) in IRCON opens tomorrow that is Wednesday 3rd March specifically for non-retail investors. Will be for retail investors. and the government would divest around 10% equity with an additional 6% as greenshoe option.” 

This clearly conveys the promoter proposes to sell up to 4,70,25,787 equity shares of the company, (representing as best offer size) on  Wednesday for non-retail investors to get welcomed with their bids. While on T+1 day or Day 2 on Thursday retail investors can subscribe to the office and move further. 

Reports say that in a regulatory filing of stock exchanges, IRCON fixed the floor cost for the offer shall be around Rs 88 per equity share. While on the other hand, 16 percent of the government’s stake would fetch over Rs 600 crore to the Exchequer. Lastly, the IRCON shares closed at Rs 97.85 percent, up 1.87 percent over the earlier close on the BSE. On Monday, the basic floor price of Rs 88 is at a 10 percent discount closing market price of IRCON. 

Furthermore, the Indian government has fixed a disinvestment target of Rs 32,000 crore in the new Revised Estimates for the recent fiscal. Till now, it has realized a target of Rs 20,626 crore via minority stake sale bin Closes and also share buybacks. 

Note: This news is based on millions of articles over the internet, Global Business Line does not take any responsibility for the facts and information mentioned in this news article.

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