The government will offload about 3.76 crore shares, which represents 4% stake through the OFS, and in the case of oversubscription, an additional 4% stake will be under sale.
The offer for sale will take place on December 8 through a separate window on the stock exchanges.
The floor price of the offer is fixed at Rs 154, which is nearly 10% discount to the last traded price.
As of September-end, the government holds 73.18% stake in the company. Non-retail investors can place their bids on December 7, which is the T day, and retail investors can participate in the OFS on December 8 (T+1).
The non-retail investors may indicate their willingness to carry forward their unallotted bids to T+1 day for allocation to them in the unsubscribed portion of the retail category.
The allocation will be at or above the floor price on price priority basis, except in case of retail investors, who will have an option to bid at or above the cut-off price.About 10% of the offer is reserved for retail investors. If the retail category is undersubscribed, those shares will be allotted to non-retail investors who have chosen to carry forward their unallotted bids to T+ l day.
Meanwhile, 0.5% of the offer size is reserved for employees. The shares to employees will be given at the cut-off price in the retail category of the offer.
A minimum of 25% of the offer shares are reserved for mutual funds and insurance companies, and in case of undersubscription in this category, the unsubscribed portion will be available to other bidders in the non-retail category.
IDBI Capital Markets, BoB Capital Markets, and YES Securites are acting as brokers to the proposed OFS.
State-owned IRCON is a specialized constructions company covering the entire spectrum of construction activities and services in the infrastructure sector. Railway and highway construction, EHP sub-station and MRTS are the core competence areas of the company.
The company’s shares traded 0.81% lower on Wednesday to close at Rs 172 on BSE.
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