Shares of IRCON International Ltd on Wednesday closed with over 7 per cent losses after the government announced its plan to pare its stake in the railway PSU.
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 Ã‚ 6% as Green Shoe option".
The offer for sale (OFS) for up to 16 per cent government stake at a floor price of ₹88 per share in IRCON will open on Wednesday, as per a regulatory filing of the firm on Tuesday.
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. At the floor price, a 16 per cent stake would fetch over ₹600 crore to the exchequer.