IRCTC drops as OFS begins

Indian Railway Catering and Tourism Corporation (IRCTC) dropped 4.70% to Rs 700.20 after the offer for sale (OFS) opened for non-retail investors today, 15 December 2022.

Through the OFS, the Government of India proposes to sell up to 2 crore equity shares (representing 2.5% stake), with an option to sell an additional 2.5% stake or 2 crore equity shares in case of oversubscription.

The floor price for the sale has been set at Rs 680, a 7.45% discount to the stock's closing price of Rs 734.70 on Wednesday.

The total OFS size (base size + green shoe) stands at 4 crore shares, representing 5% of outstanding equity shares of the company, the value of which (at floor price) aggregates to Rs 2720 crore.

The Government of India held 67.40% stake in IRCTC as of 30 September 2021.

The OFS opened on Thursday (15 December 2022) for non-retail investors, while both retail as well as non-retail investors will be able to subscribe on Friday (16 December 2022).

As on 10:26 IST, the OFS received subscription for 5,51,853 shares. It was subscribed 3.07% on the base non-retail offer size of 1.80 crore shares and 1.53% on the total non-retail offer size (base size + green shoe) of 3.60 crore shares.

IRCTC, a Mini Ratna public sector enterprise under the administrative control of Ministry of Railways, is the sole entity authorized by Indian Railways (IR) to provide catering services to railways, online railway tickets and packaged drinking water at railway stations and trains in India.

IRCTC's consolidated net profit jumped 42.54% to Rs 226.03 crore on 98.99% surge in revenue from operations to Rs 805.80 crore in Q2 FY23 over Q2 FY22.

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