IRCON in the red

Ircon International is among the top five losers on the BSE; opening 8% lower at Rs.157.95, which is closer to its intraday low at Rs.157.50; it has recovered from here but remains in the red at Rs.159 levels.

The stock price of this Govt-owned railway engineering company fell after the Govt said that it will be 8% of its stake via Offer-for-sale (OFS).

The floor price is set at Rs.154/share, which is at a discount of 10% to its yesterday’s closing price.

The Govt holds 73.18% stake in the company. It will sell 4% or 3.76 crore shares first and additional 4% through the greenshoe option.

The offer for sale opens on Dec. 7 for non-retail investors and for retail investors, its tomorrow, 8th Dec.

Till date, in current fiscal of FY24, as against the PSU divestment target of Rs.51,000 crore, Govt has raised just Rs.8859 crore via stake sales in PSUs.