The government of India will offload its residual 26 per cent stake in IBP Ltd through book-built public offering slated to open on February 23.

The biding for offer to sale 5.758 million shares of Rs 10 each would close on March 1 and the price band would be announced prior to the bid opening date.

The qualified institutional investors would get up to 50 per cent of the offer while not less than 25 per cent would go to retail investors on proportionate basis, IBP managing director Arun Jyoti told reporters in Mumbai on Thursday.

Dwelling on the company's growth plans, Jyoti said it would continue with strategy to open more retail outlets and brand building in 2004-05. It has set up 446 outlets up to December 31, 2003 in the current fiscal.

The company would also focus on its explosives and cryogenics business to boost revenues and earn better margins, Jyoti said.

He, however, declined to elaborate on future plans citing norms governing public issue process.

The company has reduced the operating costs and trimmed workforce by 15 per cent in the last three years to the current level of 2,205, he said.

"We are not planning for another retirement scheme and would operate with same manpower strength," he added.

IBP director (finance) A K Sinha said the company was debt free and its future plans would be partly funded by cash surplus of Rs 900 crore (Rs 9 billion).