Two PSU IPOs to hit markets this month; Ircon bidding to begin on Sep 17

Railways engineering and construction firm Ircon International and defence shipbuilder Garden Reach Shipbuilders and Engineers will come out with their IPOs this month, which could together fetch about Rs 8.15 billion to the exchequer.

The bidding in Ircon's initial share-sale will begin on September 17 and close on September 19, while that of Garden Reach will be open for public subscription from September 24-26, the two state-run companies said.

The equity shares of these companies will be listed on BSE and NSE.

The public issues are being floated as the government intends to unlock the value of such PSUs and bring in greater accountability.
 

The government is targeting to garner Rs 8000 billion through stake sales in state-owned companies in 2018-19.

In June this year, railway consultancy firm RITES made a successful initial share-sale.

Ircon's initial public offer (IPO) comprises an offer for sale of 9,905,157 equity shares or 10 per cent stake by the government. It has fixed a price band of Rs 470-475 per equity share.

At the higher end of the price band, the shares are estimated to fetch over Rs 4.7 billion.

Garden Reach has priced its shares in the range of Rs 115-118 apiece, which will fetch the government around Rs 345 crore from selling its 25 per cent stake.