The Indian headline indices were trading lower following a robust rally in the past few trading sessions. The decline was influenced by notable losses in the FMCG, metals, and real estate sectors. IRCON International Ltd, a civil construction company, made headlines following the announcement that the Government of India plans to sell up to 8% of the company’s stake through an offer for sale (OFS).
The President of India, acting through and represented by the Ministry of Railways, Government of India, serves as the company’s promoter. The promoter has proposed to divest up to 3,76,20,629 equity shares with a face value of Rs 2 each, constituting 4% of the total issued and paid-up equity share capital of the company.
This offering is scheduled for December 7, 2023, exclusively for non-retail investors, and on December 8, 2023, for retail investors and non-retail investors opting to carry forward their unallotted bids. Additionally, there is an option to further sell 3,76,20,629 equity shares, equivalent to 4% of the total issued and paid-up equity share capital of the company. The floor price for the offer is set at Rs 154 per equity share of the company.
The shares encountered significant selling pressure, plummeting by over 8% and hitting an intraday low of Rs 157.50 per share on the BSE. Previously, these shares had climbed by more than 170% year-to-date and had recently reached a 52-week high of Rs 179.90 on the BSE.
IRCON International Limited (IRCON) embarked on its business journey in 1976 with a primary focus on railway construction. However, it began diversifying its operations evolving into an integrated engineering and construction Public Sector Undertaking (PSU). It specializes in executing large and technologically complex infrastructure projects across a spectrum of sectors, including railways, highways, and more.
Keep a close eye on this stock for the upcoming trading sessions.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.
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