IRCON’s share price was slumping on Thursday morning, going down 8% to hit an intraday low of ₹157.60.

What Happened: On Wednesday evening, the Secretary of the Department of Investment and Public Asset Management (DIPAM) announced the government’s decision to divest up to 8% of its stake in IRCON International through an offer for sale (OFS). The floor price for the OFS has been established at ₹154 per share, representing around a 10% discount compared to the stock’s closing price of Rs 171.65 on the preceding Wednesday.

With the government currently holding a 73.18% stake in the company, this 8% stake sale aims to generate approximately ₹1,159 crore. The plan involves an initial sale of 4% of the company’s shares, with an additional 4% available if the offer experiences oversubscription.

See Also: See No Value In Adani Stock, Can Make Enough Money From Other Stocks, Says Finfluencer

Thus far in the year ending March 2024, the government has garnered ₹8,859 crore from share sales in public sector units, a figure that falls short of the ₹51,000 crore target.

The IRCON OFS is scheduled to occur within a specific window on the stock exchanges during the T+1 period, taking place from 9:15 am to 3:30 pm on December 7, 2023 (T Day), continuing into the following day. Notably, only non-retail investors will be eligible to submit their bids on December 7, with an option to express a willingness to carry forward unallotted bids to T+l Day for potential allocation in the unsubscribed portion of the Retail Category, as indicated by the company in its exchange filing.

Non-retail investors who opt to carry forward their unallotted bids to December 8 (T+l Day) will have the opportunity to revise their bids and potentially receive an allocation in the unsubscribed portion of the Retail Category.

Price Action: IRCON’s share price was down 7.85% to trade at ₹158.45 as the markets opened on Thursday.

Read Next: Revving Up December: Upcoming Auto Launches Featuring Renault, Mercedes, Lexus