After ONGC, the Narendra Modi government has started working on another smaller but important offer for sale (OFS) issue. People in the know have told CNBC-TV18 that the government has fast-tracked this process.
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Investment bankers have already been appointed for Ircon International’s OFS issue, as per sources.
The government is expected to dilute 15 percent of its stake in the company to raise approximately Rs 600 crore through the offer. Post the OFS issue, the government’s stake could come down to 58-60 percent from the current 73 percent.
It is noteworthy that the government also sold 16 percent of its stake in Ircon International last year through an OFS issue which was then priced at Rs 88/share.
Ircon International is a Government of India undertaking under the Ministry Of Railways. Ircon is involved in specialized constructions having railway and highway constructions, EHP substation and MRTS as its core competence areas.
Ircon International listed on exchanges in September 2018 with an issue price of Rs 475/share. The stock hit its 52-week high price of 101/share and currently trades at its lowest level in the previous 52-weeks.
