Is it true that government plans to hive of a stake in IRCON International?
Answer
Answer
You are right, the government plans to hive off 16% stake in IRCON International via OFS, which opened for non-retail bidders on 03 March and will be open for retail investors on 04 March. The government has set the price of the OFS at Rs.88, which is a 10% discount. The stake sale will fetch the Indian government Rs.656 crore. The base OFS is for 4.7 crore shares representing 10% of the capital with green shoe option for another 2.82 crore shares.
The Indian government currently holds an 89.18% stake in IRCON International and if the full issue with the green shoe goes through, then the government stake comes down to 73.18%.