Ircon International Ltd., a state-run railway company, launched its initial public offering (IPO) as the government’s desired to offload part of its stake. The government planned to raise about Rs. 467 crores through the introductory offer, by selling a 10.5 per cent stake. The company initial offering stood at a price of Rs 470-475 apiece for 99.1 lakh shares.
Established in 1976, Ircon International is the second Indian Railways subsidiary, after Rites Ltd, which is being divested. Ircon is engaged in the engineering and construction business. The company receives nearly 87 per cent of its orders from the Ministry of Railways.
The state-run company also focuses on engineering, procurement and construction, and build-operate-transfer projects. As per financials, Ircon’s net worth stood at about Rs 3,762 crore. It had an own cash balance of close to Rs 1,200 crore as of March.
The company is debt-free and has an order book of Rs. 22,406 crore as of March. It also has the presence in Sri Lanka, Bangladesh, Malaysia, South Africa and Algeria.
The initial public offer of Ircon International was fully subscribed on the second day of bidding. The IPO received bids for 1.01 crore shares against the total issue size of 99 lakh shares, as per data on the National Stock Exchange. The Initial public offering which started on 17th September 2018 would close on 19th September 2018.