In October last year, the Government unleashed a series of IPOs to dilute 12.6% of its stake in the state-owned Indian Railway Catering and Tourism Corporation (IRCTC).
As a part of its disinvestment drive, the Government is now mulling over selling a part of its stake in other railway companies like Rail Vikas Nigam Ltd (RVNL), Indian Railway Finance Corporation (IRFC) and IRCON International Ltd.
Lets learn more about this.
Govt Plans to Sell Stake in IRCON
The Govt has been making some decisions to monetise and revamp its webbed railway infrastructure.
After gaining huge success in public listing IRCTC, the Govt is now looking forward to list some of its railway cos like RVNL, IRFC and IRCON International Ltd.
Of these, it has reportedly been thinking about selling 15% of its stake in the railway engineering and construction organisation IRCON International Ltd.
PTI has reported that if the stake sale goes live, it will be conducted via an ‘offer-for-sale’ (OFS) of shares in the company.
Currently, 89.18% of IRCON’s shares are owned by the Government.
When Could OFS Go Live?
According to a railway official, they (Govt) are planning to conduct the IRCON OFS by December, however it will largely depend upon the market conditions too.
The official also informed that the stake on offer would be between 10-15%.
Why is the Govt Planning to Sell 10-15% of its Stake?
It has been reported that the Govt is conducting this OFS, as a part of its disinvestment drive for 2019-20.
IRCON International Ltd went live in the market in 2018, with Rs 467-crore IPO.
The company’s current share price is Rs 78.65 per piece on the Bombay Stock Exchange.
The Govt expects to raise nearly Rs 540 crore at this current price, if it sells 15% stake in IRCON.
Pressed for revenue due to the pandemic, the government wants to raise Rs 2.10 lakh crore by disinvesting stakes in myriad PSUs in the current fiscal.
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