Key Points:
- The government said that it is planning to sell up to 20 per cent stake in Indian Railway Catering and Tourism corporation through an Offer For Sale (OFS), which had opened subscription on Thursday.
- Shares of IRCTC on Wednesday closed at Rs 1,618.05 on the BSE, down 1.55 per cent from its previous close.
- On day 1 of the offer, non-retail category saw subscription of 4,27,68,445 equity shares against the base offer size of 2,40,00,000.
On Wednesday, the government said that it is planning to sell up to 20 per cent stake in Indian Railway Catering and Tourism corporation through an Offer For Sale (OFS), which had opened subscription on Thursday.
Offer for Sale of Govt shares in IRCTC received great response on day one as the issue subscribed 1.98 times of base size at a clearing price above the floor price by non- retail investors. On day 1 of the offer, non-retail category saw subscription of 4,27,68,445 equity shares against the base offer size of 2,40,00,000.
Offer for Sale of Govt shares in IRCTC got great response on day one. Issue subscribed 1.98 times of base size at a clearing price above the floor price by non- retail investors . Govt has decided to exercise the green shoe option. Retail investors get chance to bid tomorrow. pic.twitter.com/4tgFzQVJDS
— Secretary, DIPAM (@SecyDIPAM) December 10, 2020
After reopening the market, IRCTC’s shares, in the earlier trade went down over 10 per cent to Rs 1,451. Shares of IRCTC on Wednesday closed at Rs 1,618.05 on the BSE, down 1.55 per cent from its previous close.
Shares were under pressure after the government announced an offer for sale of its 20% stake in the company. IRCTC share price has fallen 16% since Monday. At 12:25 p.m., IRCTC share was trading at ₹1,430, approx. 2% down from Thursday’s closing price.
2,40,00,000 equity shares of IRCTC were proposed to be sold by the promoter that could represent up to 15 per cent stake plus an option of selling 80,00,000 shares, representing 5 per cent of the total issued equity share capital. The floor price for the offer shall be ₹1,367, it said.
Shares of IRCTC fell by 11 per cent after it said the government will sell up to 20 per cent stake in the company through an offer for sale to raise ₹4,374 crore.
IRCTC, the only unit authorized by the Indian Railways to provide catering services, online railway tickets and packaged drinking water at railway stations and trains in India, was listed on the stock exchanges in October 2019. The company had raised Rs 645 crore through the IPO.
Shares of IRCTC ended at Rs 1,451.95, down Rs 166.10, or 10.27 percent, on the BSE.
