The Union government has proposed to sell up to Rs 2.40 crore shares or 15% of the paid-up equity share capital of Indian Railway Catering and Tourism Corp (IRCRTC) through an Offer for Sale (OFS) which opens for subscription on Thursday.
The Twitter handle of the Secretary of Department of Investment and Public Asset Management (DIPAM) said on Wednesday, “Offer for Sale in IRCTC opens tomorrow for Non Retail investors. Day 2 for retail investors. Govt. would divest 15 per cent equity with a 5 per cent green shoe option.”
It has also proposed an additional share sale of up Rs 80 lakh equity shares of 5% of the paid-up equity share capital, in case of oversubscription.
In total, the base offer size and oversubscription option represent 20% of the outstanding equity shares of the company or 3.2 crore shares.
The floor price of the offer has been fixed at Rs 1,367 per equity share.
IRCTC OFS will help the government inch forward in meeting the Rs 2.10 lakh crore disinvestment target.
The IRCTC share sale will take place on a separate window of the stock exchanges on December 10 and December 11. Only retail investors shall be allowed to place their bids on December 11.
IRCTC, a public sector undertaking (PSU) of the Ministry of Railways, is the only entity authorised by Indian Railways to provide catering services, online railway tickets and packaged drinking water at railway stations and trains in India, was listed on the stock exchanges in October 2019. The company had raised Rs 645 crore through the IPO.
As of September 30, the government had held an 87.40 stake in IRCTC which went public last year. To meet Sebi’s public holding norm, the government has to lower its stake in the company to 75%.
The Union Cabinet had in April 2017 approved the listing of five railway companies. While four of them — IRCON International Ltd, RITES Ltd, Rail Vikas Nigam Ltd and IRTC — have already been listed, IRFC is likely to be put on the block this fiscal.
(With agency inputs)