Narendra Modi's government plans to sell 15% stake in IRCON International Limited, an engineering company of Indian Railways. The shares will be sold through Offer for Sale (OFS). At present, 79.18% stake in IRCON International belongs to the central government.
It is learned that the shares of this company will be transferred next December. However, this sale will depend entirely on the market conditions. An Indian Railways official said 10 to 15% of the shares would be sold.
Railway Engineering Assistant IRCON International was listed on the stock exchange in 2016. IRCON has raised Rs 467 crore through an IPO. IRCN International closed at Tk 6.99 per share on the BSE on Friday. The government will get Rs 540 crore from the sale of 15% shares of IRCON based on the latest share price.
The central government has set an investment target of Tk 2.10 lakh crore in FY 20-21. It will raise Tk 1.20 lakh crore by selling shares of Central Public Sector Enterprises (CPSE). At the same time, Tk 90,000 crore will be raised from the sale of shares of financial institutions. The list also includes 10 percent shares of LIC.
In the current financial year, the government has received Tk 8,136 crore from the sale of shares of public sector enterprises. However, due to the Corona epidemic, the government has not been able to sell shares of large companies like Bharat Petroleum Corporation Limited (BPCL). It is also in the process of selling shares of Railway Catering and Tourism Corporation of India (IRCTC) and Railway Development Corporation Limited (RVNL). Sales of both these companies will also be through OFS.