NEW DELHI: The Government of India is selling up to 5% stake in the Indian Railway Catering and Tourism Corporation (IRCTC) through an (offer for sale) on Thursday and Friday. The floor price of the OFS has been fixed at Rs 680 per share which translates to a near 7.5% discount from the stock’s close of Rs 735 on Wednesday. The OFS size is Rs 2,720 crore at Floor Price. The total stake of the government in the company is 67.4%.
The stake sale in IRCTC is part of the government’s disinvestment target. The Centre has set a target to raise Rs 65,000 crore through divestment in FY2022-23. “The promoter proposes to sell up to 2,00,00,000 equity shares of the company, (representing 2.5% of the total issued and paid up equity share capital of the company), on December 15, 2022, (for non-Retail Investors only) and on December 16, 2022 (for Retail Investors and for non-retail investors who choose to carry forward their unallotted bids) with an option to additionally sell 2,00,00,000 equity shares (representing 2.5% of the issued and paid up equity share of the company),” IRCTC said in a regulatory filing on Wednesday. Minimum 25% of the shares in the OFS is reserved for mutual funds and insurance companies, while 10% will be kept aside for retail investors.