Ircon International Shares Tumble Over 8% On Government Plan To Sell Stake
The government plans to offload 8% stake in the railway engineering company.
![<div class="paragraphs"><p>(Source: Ircon Website) </p></div>](https://media.assettype.com/bloombergquint%2F2023-10%2F158b6e9e-ba71-4e0a-9178-b46b3a3a5f17%2F5bInside.jpg?rect=0%2C73%2C960%2C540&auto=format%2Ccompress&w=200)
Shares of Ircon International Ltd. fell on Thursday, as the government plans to sell 8% stake in the company for Rs 1,158 crore.
The government currently holds an 89.18% stake in the railway engineering company. After the offer for sale, the government's stake in the company will reduce to 67.3%.
It will sell 3.76 crore shares, which is 4%, and will divest an additional 4% through the greenshoe option at a floor price of Rs 154 per share.
The offer for sale will open on Dec. 7 for non-retail investors, while retail investors can participate on Dec. 8. The floor price is set at a discount of 10% on Wednesday's closing price of Rs 171.95 apiece on the NSE.
![Ircon International Shares Tumble Over 8% On Government Plan To Sell Stake](https://media.assettype.com/bloombergquint%2F2023-12%2F1bb364d2-ad3c-4140-8f79-989e67588054%2FIRCON.png?auto=format%2Ccompress)
Shares of Ircon International fell as much as 8.37%, the lowest since Nov. 17, before paring loss to trade 7.4% lower at 10:13 a.m. This compares to a 0.33% decline in the NSE Nifty 50.
The stock has risen 166.28% on a year-to-date basis. Total traded volume so far in the day stood at 5 times its 30-day average. The relative strength index was at 48.45.
Of the three analysts tracking the company, two maintain a 'buy' rating and one suggests a 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 1.3%.