 "IRCTC shares tumble 13% as government's stake sale via OFS begins")
Shares of Indian Railway Catering and Tourism Corporation (IRCTC) slipped 13 per cent to Rs 1,405 on the BSE on Thursday as the government's proposed stake sale of up to 20 per cent equity shares via an offer for sale (OFS) began today.
The government would divest 15 per cent equity with a 5 per cent green shoe option. The floor price for the offer fixed at Rs 1,367 per share, a 16 per cent discount to Wednesday’s closing price of Rs 1,618 on the BSE. The OFS opened today for non retail investors and will open tomorrow for retail investors.
“The promoter proposes to sell up to 24 million equity shares of IRCTC, representing up to 15 per cent stake, with an option to additionally sell 8 million shares, representing 5 per cent of the total issued and paid up equity share capital”, the company said in a regulatory filing.
The government currently holds 87.40 per cent stake in IRCTC. To meet Sebi's public holding norm, the government has to lower its stake in the company to 75 per cent. IRCTC OFS will help the government inch forward in meeting the Rs 2.10 trillion disinvestment target.
A total of 10 per cent of OFS has been reserved for Retail investors and 5 per cent is reserved for employees.
IRCTC, the only entity authorised by Indian Railways to provide catering services to railways, 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.
The stock was trading lower for the third straight trading days, down 19 per cent during the period. Prior to that, in just three trading days, the stock had rallied 25 per cent from Rs 1,350 to Rs 1,691.
At 09:46 am, IRCTC was down 8 per cent at Rs 1,489 on the BSE, as compared to 0.7 per cent decline in the S&P BSE Sensex. The trading volumes on the counter jumped 1.5 times with a combined 4.55 million equity shares were changing hands on the NSE and BSE.
The government would divest 15 per cent equity with a 5 per cent green shoe option. The floor price for the offer fixed at Rs 1,367 per share, a 16 per cent discount to Wednesday’s closing price of Rs 1,618 on the BSE. The OFS opened today for non retail investors and will open tomorrow for retail investors.
“The promoter proposes to sell up to 24 million equity shares of IRCTC, representing up to 15 per cent stake, with an option to additionally sell 8 million shares, representing 5 per cent of the total issued and paid up equity share capital”, the company said in a regulatory filing.
The government currently holds 87.40 per cent stake in IRCTC. To meet Sebi's public holding norm, the government has to lower its stake in the company to 75 per cent. IRCTC OFS will help the government inch forward in meeting the Rs 2.10 trillion disinvestment target.
A total of 10 per cent of OFS has been reserved for Retail investors and 5 per cent is reserved for employees.
IRCTC, the only entity authorised by Indian Railways to provide catering services to railways, 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.
The stock was trading lower for the third straight trading days, down 19 per cent during the period. Prior to that, in just three trading days, the stock had rallied 25 per cent from Rs 1,350 to Rs 1,691.
At 09:46 am, IRCTC was down 8 per cent at Rs 1,489 on the BSE, as compared to 0.7 per cent decline in the S&P BSE Sensex. The trading volumes on the counter jumped 1.5 times with a combined 4.55 million equity shares were changing hands on the NSE and BSE.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%