In a notable financial development, the government’s sale of shares in IRCON witnessed overwhelming demand from both institutional and retail investors. The sale of approximately 7.53 crore equity shares, constituting 8 per cent of the railway public sector unit (PSU), was offered at a floor price of Rs 154 per share through a two-day offer for sale (OFS). The robust investor response is poised to contribute significantly to the exchequer, with an estimated gain of about Rs 1,100 crore.
Retail Investor Enthusiasm Propels Day Two Subscription
On the second day of the IRCON OFS, retail investors displayed noteworthy interest, driving the subscription rate to 3.01 times. The Department of Investment and Public Asset Management (DIPAM) Secretary shared this encouraging development in a post on X (formerly Twitter) on Friday. Meanwhile, on the preceding day, institutional investors exhibited strong interest by bidding for over 15.66 crore shares of IRCON International, surpassing the reserved portion 4.63 times and contributing bids worth Rs 2,400 crore.
Government Progresses Towards Fiscal Targets
The government’s move to divest its stake in IRCON aligns with its strategy to meet fiscal targets through disinvestment. Currently holding 73.18 per cent in IRCON, an engineering and construction firm, the government is making strides in achieving its disinvestment goals. As of now, in the current fiscal year, the government has successfully raised Rs 8,859 crore through the sale of minority stakes in Central Public Sector Enterprises (CPSEs). This effort contributes to the broader budgetary objective, with a set target of Rs 51,000 crore to be garnered from PSU disinvestment. The closing stock price of IRCON remained steady at Rs 160.75 per share, maintaining its position from Thursday’s closing figures on the BSE.