IRCON share sale over-subscribed; Govt to get around Rs 1,100 cr

New Delhi: The government's share sale in IRCON was oversubscribed, with investments from both institutional and retail investors, and it will help the exchequer garner about Rs 1,100 crore.

The government is selling about 7.53 crore equity shares, representing 8 per cent of the railway public sector unit (PSU) at a floor price of Rs 154 apiece through a two-day offer for sale (OFS).

The share sale would fetch about Rs 1,100 crore to the exchequer.

"The second day of IRCON OFS closed with good interest from retail investors with 3.01 times subscription," the Department of Investment and Public Asset Management (DIPAM) Secretary said in a post on X (formerly Twitter) on Friday.

The second day of IRCON OFS closed with good interest from retail investors with 3.01 times subscription. We thank all investors for their participation. pic.twitter.com/U6Nj6oVVJu

— Secretary, DIPAM (@SecyDIPAM) December 8, 2023

On Thursday, institutional investors put bids for over 15.66 crore shares of IRCON International worth Rs 2,400 crore, over-subscribing the portion reserved for them 4.63 times.

Currently, the government holds 73.18 per cent in IRCON, an engineering and construction firm.

Shares of IRCON closed at Rs 160.75 per piece, unchanged over Thursday's close on BSE.

So far in the current fiscal, the government has raised Rs 8,859 crore by selling a minority stake in CPSEs. The budget has set a target of Rs 51,000 crore to be mopped up from PSU disinvestment.