IRCON International shares cracked 9% after opening of two-day OFS. Here's why
IRCON International shares tanked 8.43 per cent to hit a low of Rs 157.50 on BSE. With this, the multibagger stock has cut its year-to-date rise to 166.58 per cent.
- Dec 7, 2023,
- Updated Dec 7, 2023 9:34 AM IST
Shares of IRCON International Ltd cracked over 9 per cent as soon as the opening bell rang on Thursday, as the two-day offer for sale (OFS) by open on Thursday. The promoter of IRCON International -- The President of India, acting through and represented by the Ministry of Railways, government of India, is looking to offload 8 per cent stake in the company . The floor price of the OFS has been set at Rs 154, which was at 10.46 per cent discount to Rs 172, the closing price for IRCON International on Wednesday.
Following the development, IRCON International shares tanked 8.43 per cent to hit a low of Rs 157.50 on BSE. With this, the multibagger stock has cut its year-to-date rise to 166.58 per cent.
The IRCON International promoter is looking to sell up to 3,76,20,629 shares of face value of Rs 2 each, which represents 4 per cent of the total issued and paid-up equity share capital of the company.
On Thursday, only non-retail investors could participate in the OFS. Retail investors, and non-retail investors-- who wish to carry forward their unallotted bids, could participate in the issue on Friday.
Also read: IRCON International shares in focus as OFS to kick off today; floor price, other key details
The government may sell up to 3,76,20,629 additional IRCON International shares, representing 4 per cent of the equity share capital of the company in case the OFS sees an oversubscription. In that case, the OFS would constitute 8 per cent of total paid-up capital.
As per BSE, the government owned 73.18 per cent stake in the 'Navratna' PSU.
"Such number of shares as would be equivalent to up to 0.50 per cent of the paid-up equity capital subsequent to completion of the Offer and may be offered to eligible and willing employees of the company subsequent to completion of the offer in accordance with the terms and conditions provided in OFS Guidelines, subject to approval from the competent authority. The employees will be eligible to apply for equity shares up to Rs 2,00,000," IRCON International said.
IRCON International said if there is an unsubscribed employee portion, the that unsubscribed portion would be allotted on a proportionate basis, for a value in excess of Rs 2,00,000, subject to the total allotment to an employee not exceeding Rs 5,00,000, the PSU told stock exchanges.
"Those non-retail investors who have placed their bids on T Day and have chosen to carry forward their unallotted bids to T+1 Day, shall be allowed to carry forward for allocation to them in the unsubscribed portion of retail category and also revise their bids on T+1 as per the OFS Guidelines," IRCON International said.
Also read: Adani Ports shares in focus on Gopalpur Ports acquisition talks report
Shares of IRCON International Ltd cracked over 9 per cent as soon as the opening bell rang on Thursday, as the two-day offer for sale (OFS) by open on Thursday. The promoter of IRCON International -- The President of India, acting through and represented by the Ministry of Railways, government of India, is looking to offload 8 per cent stake in the company . The floor price of the OFS has been set at Rs 154, which was at 10.46 per cent discount to Rs 172, the closing price for IRCON International on Wednesday.
Following the development, IRCON International shares tanked 8.43 per cent to hit a low of Rs 157.50 on BSE. With this, the multibagger stock has cut its year-to-date rise to 166.58 per cent.
The IRCON International promoter is looking to sell up to 3,76,20,629 shares of face value of Rs 2 each, which represents 4 per cent of the total issued and paid-up equity share capital of the company.
On Thursday, only non-retail investors could participate in the OFS. Retail investors, and non-retail investors-- who wish to carry forward their unallotted bids, could participate in the issue on Friday.
Also read: IRCON International shares in focus as OFS to kick off today; floor price, other key details
The government may sell up to 3,76,20,629 additional IRCON International shares, representing 4 per cent of the equity share capital of the company in case the OFS sees an oversubscription. In that case, the OFS would constitute 8 per cent of total paid-up capital.
As per BSE, the government owned 73.18 per cent stake in the 'Navratna' PSU.
"Such number of shares as would be equivalent to up to 0.50 per cent of the paid-up equity capital subsequent to completion of the Offer and may be offered to eligible and willing employees of the company subsequent to completion of the offer in accordance with the terms and conditions provided in OFS Guidelines, subject to approval from the competent authority. The employees will be eligible to apply for equity shares up to Rs 2,00,000," IRCON International said.
IRCON International said if there is an unsubscribed employee portion, the that unsubscribed portion would be allotted on a proportionate basis, for a value in excess of Rs 2,00,000, subject to the total allotment to an employee not exceeding Rs 5,00,000, the PSU told stock exchanges.
"Those non-retail investors who have placed their bids on T Day and have chosen to carry forward their unallotted bids to T+1 Day, shall be allowed to carry forward for allocation to them in the unsubscribed portion of retail category and also revise their bids on T+1 as per the OFS Guidelines," IRCON International said.
Also read: Adani Ports shares in focus on Gopalpur Ports acquisition talks report