Sale of 20 percent stake in IRCTC opens tomorrow for Non Retail investors

The government is planning to sell up to 20 percent stake in Indian Railway Catering and Tourism Corp (IRCTC) through an Offer for Sale (OFS) which opens for subscription on Thursday, reports PTI.

“Offer for Sale in IRCTC opens tomorrow for Non Retail investors. Day 2 for retail investors. Govt. would divest 15 percent equity with a 5 percent green shoe option,” Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey said in a tweet.

The promoter proposes to sell up to 2,40,00,000 equity shares of IRCTC, representing up to 15 percent stake, with an option to additionally sell 80,00,000 shares, representing 5 percent of the total issued and paid up equity share capital, the company said in a regulatory filing.

The floor price for the offer shall be Rs 1,367, it said.

Shares of IRCTC on Wednesday closed at Rs 1,618.05 apiece on the BSE, down 1.55 percent from its previous close.

In all, the promoter Government of India will sell 3.2 crore shares, which is expected to garner Rs 4,374 crore for the exchequer starved of funds due to the COVID-19 crisis.