The government is planning to sell up to 15 per cent of its stake in railway engineering company IRCON International Ltd through an offer-for-sale of shares, an official said. The government currently holds 89.18 per cent stake in IRCON International Ltd. "We are planning for IRCON OFS by December depending on market conditions. The stake on offer would be between 10-15 per cent," the official said.
The railway engineering firm got listed on the bourses in 2018, and its initial public offering (IPO) had garnered Rs 467 crore. Shares of IRCON International closed at Rs 77.95 apiece on the BSE on Friday. At the current market price, the government could raise about Rs 540 crore by selling 15 per cent stake.
The government is looking to raise Rs 2.10 lakh crore through disinvestment in the current fiscal. This includes Rs 1.20 lakh crore from Central Public Sector Enterprise (CPSE) stake sale and Rs 90,000 crore from sale of government stake in financial institutions. So far this fiscal, Rs 6,138 crore has been raised from selling minority stake in CPSEs as COVID-19 pandemic has delayed big ticket disinvestments like Bharat Petroleum Corporation Ltd (BPCL).
The government is also in the process of selling stake in Indian Railway Catering and Tourism Corp Ltd (IRCTC) and Rail Vikas Nigam Ltd (RVNL) through offer-for-sale of shares.