Mumbai, September 7, 2018: IRCON International Limited (the “Company”) proposes to open on September 17, 2018, an initial public offering of equity shares of Face Value of Rs. 10 each (“Equity Shares”) for cash at a Price per Equity Share (including a Share Premium) (“Offer”) comprising an offer for sale of 9,905,157 Equity Shares by its Promoter, The President of India, acting through the Ministry of Railways, Government of India (“The Selling Shareholder”).
The offer includes a reservation of up to 500,000 equity shares for subscription by eligible employees (as defined in Red Herring Prospectus) (“Employee Reservation Portion”). The offer-less employee reservation portion is referred to as the net offer. The offer and the net offer will constitute 10.53% and 10.00% of the post offer paid-up equity share capital of the company respectively. The Bid/Offer Period closes on September 19, 2018.
A discount of Rs. 10 per Equity Share on the Offer Price shall be offered to the Retail Individual Bidders (“Retail Discount”) and a discount of Rs.10 per Equity Share on the Offer Price shall be offered to the Eligible Employees bidding in the Employee Reservation Portion (“Employee Discount”).
The Price Band for the Offer is from Rs. 470 to Rs. 475 per Equity Share. Bids can be made for a minimum lot of 30 Equity Shares and in multiples of 30 Equity Shares thereafter.
The Equity Shares are proposed to be listed on BSE and NSE.
The Book Running Lead Managers (“BRLMs”) to the Offer are IDBI Capital Markets & Securities Limited, Axis Capital Limited and SBI Capital Markets Limited.
The Offer is being made in terms of Rule 19(2)(b)(iii) of the Securities Contracts (Regulation) Rules, 1957, as amended (“SCRR”) read with Regulation 41of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended (“SEBI ICDR Regulations”) wherein at least 10% of the post-Offer paid-up Equity Share capital of the Company will be offered to the public. The Offer is being made through the Book Building Process in accordance with Regulation 26(1) of the SEBI ICDR Regulations, wherein 50% of the Net Offer shall be available for allocation on a proportionate basis to Qualified Institutional Buyers (“QIB Portion”). Such number of Offered Shares representing 5% of the QIB Portion shall be available for allocation on a proportionate basis to Mutual Funds only. The remainder of the QIB Portion shall be available for allocation on a proportionate basis to all QIBs, including Mutual Funds, subject to valid Bids being received from them at or above the Offer Price. However, if the aggregate demand from Mutual Funds is less than 5% of the QIB Portion, the balance Offered Shares available for allocation in the Mutual Fund Portion will be added to the remaining QIB Portion for proportionate allocation to QIBs.
Further, not less than 15% of the Net Offer shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Net Offer shall be available for allocation to Retail Individual Bidders in accordance with the SEBI ICDR Regulations, subject to valid Bids being received from them at or above the Offer Price. Further, up to 5,00,000 Equity Shares shall be offered for allocation and Allotment to the Eligible Employees Bidding in the Employee Reservation Portion, conditional upon valid Bids being received from them at or above the Offer Price. All Bidders shall participate in the Offer mandatorily through the Applications Supported by Blocked Amount (“ASBA”) process by providing the details of their respective ASBA Accounts in which the corresponding Bid Amount will be blocked by the Self Certified Syndicate Banks (“SCSBs”).
Ircon International Limited is proposing, subject to applicable statutory and regulatory requirements, receipt of requisite approvals, market conditions and other considerations, to make an initial public offer of its Equity Shares and has filed the Red Herring Prospectus dated August 31, 2018 (“RHP”)” with the RoC, National Capital Territory of Delhi & Haryana. The RHP will be available on the websites of SEBI, BSE, NSE at www.sebi.gov.in, www.bseindia.com, www.nseindia.com, respectively and is available on the websites of the BRLMs at www.idbicapital.com, www.axiscapital.co.in and www.sbicaps.com, respectively. Any potential investors should note that investment in equity shares involves a high degree of risk and for details relating to the same, refer to the Section titled “Risk Factors” of the Red Herring Prospectus. Potential investors should not rely on the DRHP filed with the SEBI for making any investment decision.
The Equity Shares have not been and will not be registered under the U.S. Securities Act or any state securities laws in the United States and may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and in accordance with any applicable U.S. state securities laws. The Equity Shares are being offered and sold only (1) in the United States to persons reasonably believed to be “qualified institutional buyers” as defined in Rule 144A, and (2) outside the United States in offshore transactions in reliance on Regulation S and the applicable laws of each jurisdiction where such offers and sales occur.
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