IRCON's offer for sale: Everything you need to know

IRCON International , a public sector company specialising in transport infrastructure, has announced an offer for sale (OFS). For the uninitiated, an OFS is a financial mechanism allowing promoters of listed companies to sell their shares directly to investors. The OFS is scheduled for two days: December 7 and 8, 2023. Retail investors will only be permitted to participate on December 8, 2023. The floor price of the OFS has been set at Rs 154 per share, more than 10 per cent lower than the stock's closing price on December 6, 2023. Consequently, its share price tanked nearly seven per cent in the early trading session of December 7, 2023. The rationale behind the OFS The OFS is part of the government's ongoing efforts to divest its stake in public enterprises. Prior to the OFS, the government held a 73.1 per cent stake in IRCON. It plans to divest 4 per cent of its stake to raise about Rs 579 crore. Also, it may divest an additional 4 per cent if the OFS is oversubscribed. Note that the company will not receive any of the proceeds. The OFS is purely for divestment purpo