The government will offload up to 8 per cent of its holding in IRCON International Ltd through offer-for-sale method better known as auction method.
“Offer-for-sale in IRCON opens tomorrow (Thursday) for non-retail investors. Retail investors can bid on Friday. Government would divest 8 per cent equity including green shoe option,” Tuhin Kanta Pandey, Secretary in the Department of Investment and Public Asset Management (DIPAM), said in a post on micro blogging site X. Post issue (including green shoe option), government’s holding will come down to around 65 per cent.
The floor price has been kept at ₹154 which is 10 per cent discount to closing market price of ₹172 on Wednesday. The government plans to sell 4 per cent or over 3.76 crore shares with a green shoe option for equal number. All together, the government can get up to over ₹1,150 crore.
IRCON International Limited is a Central public sector enterprise under Railway Ministry. It was set up to utilise the Indian Railway’s experience in helping developing nations of the world to install or maintain their own railways and also to execute railway projects for private sector. The company’s specialisation is in Railways, Railway electrification, signal and telecommunication, construction of roads, highways, commercial, industrial and residential complexes, airport runways, airport constructions, leasing of locomotives, mass rapid transit system etc.
The company has completed over 300 landmark infrastructure projects in India and 100 projects across the globe in 21 countries namely, Algeria, Angola, Bangladesh, Indonesia, Iran, Iraq, Israel, Italy, Jordan, Lebanon, Malaysia, Nepal, Nigeria, Saudi Arabia, Syria, Tanzania, Turkey, the UK and Zambia. The company has also taken up projects in Mozambique and Ethiopia.