Sale of Government shares in IRCON gets a great response on day 1: Secretary, DIPAM

Secretary, Department of Investment and Public Asset Management (DIPAM), Tuhin Kanta Pandey today said that the offer for sale of Government shares in Public Sector Undertaking, IRCON International limited has got a great response on day one.

In a tweet, the Secretary said, the issue subscribed 3.3 times of base size at a clearing price above the floor price by non-retail investors.

He said, the government has decided to exercise the green shoe option. The retail investors will get a chance to bid tomorrow.

Actually, the Union Government has proposed to sell up to 16 per cent of its stakes in IRCON International through an offer for sale (OFS) today, i.e. March 3, 2021. The government seeks to raise around Rs 662 crore through stake sales. The floor price for the offer has been fixed at Rs 88 per share.

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 the green-shoe option, comes to 16 per cent or over 7.52 crore shares.

The government holds an 89.18 per cent stake in IRCON, which is under the Railways Ministry and into the construction of transportation infrastructure.

The government has set a disinvestment target of Rs 32,000 crore in the Revised Estimates for the current fiscal. So far, it has realised Rs 20,626 crore through minority stake sale in CPSEs and share buybacks.