Indian govt to sell up to 8% stake in IRCON

NEW DELHI (Reuters) – The Indian government will sell up to an 8% stake in state-run IRCON International this week, the company said in an exchange filing.

The plan includes selling 4% of the company, with an option to sell an additional 4% if the offer is oversubscribed, the filing showed.

The floor price for the sale has been set at 154 rupees a share, a discount of about 10.5% to the stock’s closing price on Wednesday.

The Indian government owns 73.18% in the engineering and construction company, and the 8% stake sale will help the government to raise about 11.59 billion rupees ($139.11 million).

The federal government has so far collected 88.59 billion rupees by selling shares in public sector units in 2023/24, compared with a target of 510 billion rupees.

($1 = 83.3140 Indian rupees)

(Reporting by Nikunj Ohri, Editing by Louise Heavens and Sharon Singleton)