IRCON shares trade down despite winning Rs 104-crore arbitration award

IRCON shares lost 1 percent on December 19 even after the International Chamber of Commerce pronounced the award in its favour in a matter of arbitration with Eskom Holdings SOC.

The ICC has pronounced an award of Rs 103.62 crore in favour of IRCON, against the claims of Rs 115.98 crore. The competent authority of IRCON has accepted the award.

The shares jumped 2 percent in early trade, but erased their gains to trade in the red. As of 10.08am, the IRCON shares were trading at Rs 176.20, or 1 percent lower than closing price in the previous session on the NSE.

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The subject of the dispute was regarding the procurement of plant design, supply and installation of overhead track equipment, traction substations, auxiliary power supplies substations, bulk power supplies switching stations and signaling systems for Majuba Rail Project in South Africa.

Earlier in December, the government launched an OFS in the company. The Centre sold about 7.53 crore equity shares, representing 8 percent of the railway public sector unit at a floor price of Rs 154 apiece through a two-day offer-for-sale.

The government’s share sale in IRCON was oversubscribed, with investments from both institutional and retail investors, and it will help the exchequer garner about Rs 1,100 crore.

“The second day of the IRCON OFS closed with good interest from retail investors with 3.01 times subscription,” the Department of Investment and Public Asset Management (DIPAM) Secretary said in a post on X (formerly Twitter) on December 8.

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