Ircon International's OFS for non-retail investors kicks off; stock plummets over 8%

Ircon OFS date, Ircon OFS price, Ircon OFS news, Ircon OFS details: Ircon International shares on Thursday, December 7, declined over 8 per cent in early morning deals to hit a low of Rs 157.55 on the NSE as the government's two-day offer for sale (OFS) kicked off today. Non-retail investors can place their bids today, while for retail investors, the offer will open tomorrow (Friday, December 8). Ircon International shares ended 6.28 per cent lower at Rs 161.15 on the NSE.

Ircon OFS date, Ircon OFS price, Ircon OFS news, Ircon OFS details

An offer for sale is a corporate action in which the promoters (owners) sell their shares to raise additional funds for the company. Up to 3.76 crore shares with a face value of Rs 2 will be offered in the OFS, representing 4 per cent of the total paid-up equity share, while the floor price for the same has been fixed at Rs 154 a share.

The central government, through an OFS, would divest 8 per cent shares in IRCON, including the green shoe option, the X post said. The centre's plan includes selling 4 per cent of IRCON, with an option to sell an additional 4 per cent stake if the offer is oversubscribed, it said in a regulatory filing.

The green shoe option is a provision that grants the seller the right to sell investors more shares than initially planned by the issuer if the demand proves higher than expected.

What does Ircon International do?

Ircon International, or Indian Railway Construction International Limited, is an engineering and construction corporation that specialises in transport infrastructure. The public sector undertaking (PSU) was established in 1976. The government holds 73.18 per cent equity in the company.

(with inputs from agencies)

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