Govt to divest 10% in Ircon International to raise Rs 467 cr

The government is set to divest around 10 per cent in its railway subsidiary Ircon International, to raise around Rs 467 crore.

The company has fixed the price band between Rs 470 to Rs 475 per equity share for its proposed initial public offer (IPO).

The IPO is comprising an offer for sale of 9,905,157 equity shares by government, and the issue proposes to open on September 17 and close on September 19. The equity shares will be listed on BSE and NSE.

In June this year, railway consultancy firm RITES made successful IPO. In the first three months of the current fiscal, the government has raised about Rs 9,000 crore via Bharat-22 ETF and RITES stake sale.

The government has targeted to raise Rs 80,000 crore from PSU disinvestment in current fiscal, lower than over Rs 1.03 lakh crore last fiscal.

Ircon International is an integrated Indian engineering and construction company, specialising in major infrastructure projects, including, railways, highways, bridges, flyovers, tunnels, aircraft maintenance hangars, runways, EHV sub-stations, electrical and mechanical works, commercial and residential properties, development of industrial areas, and other infrastructure activities.

"The company has an order book of Rs 22,406 crore as on March 2018. We see lot of opportunities in infrastructure projects including, railways, highways, bridges, flyovers and tunnels," Ircon International chairman Sunil Kumar Chaudhary told reporters here.

Between April 2015 and December 2017, we have completed six railway projects, including construction of new railway lines, rehabilitation/conversion of existing lines, station building and facilities, bridges, replacement of railway bridges, tunnels, signalling, telecommunication networks and railway electrification.

The company commenced operations in 1976 and provides EPC services on a fixed-cum turnkey basis as well as on an item-rate basis for various infrastructure projects. It also executes on build, operate and transfer mode in various projects in order to meet the requirements of its bids.

It has five overseas offices in Sri Lanka, Bangladesh, Malaysia, South Africa and Algeria to provide onsite support for its overseas projects, Chaudhary said.