IRCTC tanks 13 per cent as govt to sell 20% stake via OFS
Published On: Thursday, December 10, 2020 | By: Team KnowMyStock
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 will sell up to 20 per cent stake in Indian Railway Catering and Tourism Corporation through an offer for sale which opens for subscription today for non-retail investors and will open tomorrow for retail investors. The floor price for the offer shall be Rs 1,367 per share, a 16 per cent discount to Wednesday’s closing price of Rs 1,618 on the BSE. The government would divest 15 per cent equity with a 5 per cent greenshoe option. 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.In all, the promoter Government of India will sell 3.2 crore shares, which is expected to garner ₹4,374 crore for the exchequer starved of funds due to the COVID-19 crisis.
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