IRCTC Shares Sink 5% As Govt to Sell Upto 5% Stake Via OFS: Figures & Details

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IRCTC Shares Sink 5% As Govt to Sell Upto 5% Stake Via OFS: Figures & Details
Credit: © Reuters.

By Malvika Gurung

Investing.com -- The central government will sell up to a 5% stake in the e-ticket booking platform for Indian Railways, IRCTC (NS: INIR ) through an offer for sale route.

The floor price for the event has been fixed at Rs 680/share, which is at a discount of over 7% compared to Wednesday’s closing price. By selling a 5% stake in IRCTC, the promoter (Govt) aims to generate around Rs 2,720 crore.

According to the state-owned giant’s latest filing to the bourses, the government proposes to offload up to 2,00,00,000 equity shares of face value of Rs 2 each through the OFS route, representing 2.5% of the total issued and paid-up equity share capital of IRCTC.

The seller will have the option to sell an additional 2,00,00,000 shares of the company besides the 2 crores already being offloaded, taking the total to 4,00,00,000 equity shares, representing 5% of the total issued and paid-up equity share capital of the company.

Non-retail investors will be allowed to place their bids on Dec 15 on a separate window from 9:15 am to 3:30 pm IST, while retail investors will be able to place their bids on Dec 16.

The allocation shall be at or above the set floor price on a price priority basis. A minimum of 25% of the Offer Shares shall be reserved for Mutual Funds and Insurance companies, noted the filing.

The Government’s brokers on the deal will be Axis Capital, Citigroup (NYSE: C ) Global Markets, Goldman Sachs (NYSE: GS ) and JM Financial (NS: JMSH ).

The PSU’s shares tanked 4.9% to Rs 699 apiece at the time of writing. 

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  • Vivek Suwarnkar @Vivek Suwarnkar
    Don’t Panic try to grab on fall as monopoly stock
    Like 2
    • Rajesh Saini @Rajesh Saini
      let it fall for another 10-12% before you think of buying it. better shift to IRFC
      Like 0

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