IRCON International tumbles as OFS begins

IRCON International slumped 6.29% to Rs 91.70 after the offer for sale (OFS) opened for non-retail investors today, 3 March 2021.

Through the OFS, the Government of India proposes to sell up to 4,70,25,787 equity shares (representing 10% stake), with an option to sell an additional 6% stake or 2,82,15,473 equity shares in case of oversubscription. The floor price for the OFS is Rs 88 per equity share, at a 10.07% discount to IRCON's closing price of Rs 97.85 on Tuesday, 2 March 2021.

The total OFS size (base size + green shoe) stands at 7,52,41,260 shares, representing 16% of outstanding equity shares of the company, aggregating to Rs 662.12 crore.

As per the latest shareholding pattern, Government of India held 89.18% stake in IRCON International as of 31 December 2020.

The OFS opened on Wednesday (3 March 2021) for non-retail investors, while both retail as well as non-retail investors will be able to subscribe on Thursday (4 March 2021).

As on 11:55 IST, the OFS received subscription for 1,98,01,580 shares. It was subscribed 60.15% on the base non-retail total offer size of 3,29,18,051 shares and 37.60% on the total non-retail total offer size (base size + green shoe) of 5,26,68,882 shares.

IRCON International is an engineering and construction, specialized in transport infrastructure and is wholly owned by the Ministry of Railways.

On a consolidated basis, the company's consolidated net profit declined by 28.3% to Rs 102.10 crore on a 11.7% rise in net sales to Rs 1353.03 crore in Q3 FY21 over Q3 FY20.

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