The government of India plans to sell up to 7.52 crore shares or 16 per cent stake in IRCON International through an offer for sale (OFS) on Wednesday and Thursday to raise about Rs 662 crore. The floor price of the offer has been fixed at Rs 88 per share, a discount of 10 per cent to Tuesday’s closing price of Rs 97.85.
The base offer is for 10 per cent share sale while the green shoes offer is 6 per cent. The government holds 89.18 per cent stake in IRCON. Retail investors can subscribe to the OFS on Thursday while non-retail investors can put their bids on Wednesday.
IRCON last month has deferred issuing bonus shares but declared an interim dividend for FY21 at Rs 1.30 per share.
IRCON’s order book to sales ratio is at 7 times, with 94 per cent of its order book in the Railway sector. IRCON already secured new orders worth Rs 4000 crore in nine months ended December 2020. Company expects to get new orders from Bangladesh of Rs 1000 crore. Similarly, the company also expects orders from Sri Lanka and Maldives for network of roads. For FY22, guidance is inflow of Rs 4000-5000 crore.
The government is looking to raise Rs 2.10 lakh crore through disinvestment in FY21 with Rs 1.20 lakh crore from Central Public Sector Enterprise (CPSE) stake sale and Rs 90,000 crore from sale of government stake in financial institutions.
Source: Economic Times