Ircon International Ltd., a state-run railway company, listed at a discount of 14 percent at Rs 410 a share on the BSE Ltd., compared to its issue price of Rs 475. The stock recovered some of its losses to close 12.75 percent lower at Rs 415.30 apiece.
Ircon is the second state-owned railway company to list on the bourse after RITES Ltd. made its debut earlier in the year as the government continues to offload its stake in PSUs to meet its divestment target.
The Rs 470-crore initial public offer was subscribed nearly 10 times. The issue price was fixed at Rs 470-475 per share. The public issue comprised a offer for sale of 99,05,157 equity shares by the government.
Business
Ircon is engaged in engineering and construction business. The company receives nearly 87 percent of its orders from the Ministry of Railways. The state-run company also focuses on engineering, procurement and construction, and build-operate-transfer projects.
Ircon's order book grew at an annualised rate of 30 percent over the last three financial years. Its current order book provides a revenue visibility of more than five years. The company plans to focus on high value orders as they provide more margins and face less competition. It bids for orders worth Rs 500 crore or above.
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