Shares of this Navratna stock under the ‘small-cap’ category fell around 8 percent in Thursday’s trading session after the Promoter, viz, the President of India, to offload stake in the company via offer-for-sale (OFS).
With a market capitalization of Rs 15,029.44 crores, the stocks of IRCON International Limited started their trading session on Thursday at Rs 157.95 and currently trades at Rs 159.80, slipping around 8 percent as compared to the previous closing levels of Rs 172 apiece.
In a recent regulatory filing with the exchange, the Navratna company intimated that the President of India, acting through and represented by the Ministry of Railways, will be releasing its stake in the company via OFS on separate windows for two days, i.e., 7th and 8th December 2023.
The Promoters are going to sell up to 3.76 crore equity shares of the face value of Rs 2 each, representing a 4 percent stake of the total issued and paid-up capital.
The OFS process comes with an option to additionally sell 3.76 crore equity shares in the event of exercising the ‘oversubscription’ option collectively representing 8 percent of the total paid-up equity share capital of the company as of 30th September 2023.
The floor price for the same is fixed at Rs 154, representing a discount of around 11 percent compared to Wednesday’s closing price of Rs 171.65 apiece. Non-retail investors can place their bids on the first day, and, retail investors can put their bids through on the second day.
During the recent financial quarters, the company has shown aggressive performance by increasing its operating revenues and net profits. The former jumped from Rs 2,717.15 crores during Q1FY23-24 to Rs 2,986.83 crores during Q2FY23-24, and, the latter, during the same period, rose from Rs 191.78 crores to Rs 223.59 crores.
As per the recent presentations of the company as of Q2FY24, the company’s order book stands at Rs 32,152 crores with a segmental bifurcation of 73.60 percent from the ‘railway’ segment, 20.30 percent from the ‘highway’ segment, and the rest 6.10 percent from other segments.
IRCON International Limited is an integrated engineering and construction company based in India that specializes in infrastructure projects including highways, railways, bridges, tunnels, flyovers, and other activities. Deriving a majority of its revenue from the ‘Railway’ sector, the company generates most of its revenue from domestic operations within India.
Written by Amit Madnani
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