Indian Railway Catering and Tourism Corporation (IRCTC) has announced an offer for sale to divest the government stake in the company by 15 per cent. IRCTC shares fell 10.27 per cent to Rs 1,451.95 on the BSE Thursday.
The move to divest 15 per cent equity with a 5 per cent greenshoe option will help the government to raise Rs 4,374 crore. The floor price for the offer fixed at Rs 1,367 per share. The OFS opened on Thursday for non-retail investors and will open on Friday for retail investors.
IRCTC OFS will help the government inch forward in meeting the disinvestment target. For the 2020-21 fiscal, the government has set a disinvestment target of Rs 2.10 lakh crore. Of this, Rs 1.20 lakh crore will come from disinvestment of public sector undertakings and another Rs 90,000 crore from stake sale in financial institutions.
“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. The government holds 87.40 per cent stake in IRCTC. The government has to lower its stake in the company to 75 per cent in order to meet Sebi’s public holding norm.
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