The government to sell a 5% stake in IRCTC
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New Delhi, Dec 15: The government will on Thursday sell up to a 5 percent stake in IRCTC through an offer for sale (OFS) at a floor price of Rs 680 a share.
The OFS includes a base issue size of 2 crore shares or a 2.5 percent stake, with an option to retain an over-subscription of another 2.5 percent, taking the total issue size to 4 crore shares or a 5 percent stake.
At the floor price of Rs 680 a share, the sale of 4 crore shares in the Indian Railway Catering and Tourism Corporation (IRCTC) would fetch about Rs 2,700 crore to the exchequer. The floor price is at a discount of 7.4 percent over Wednesday's closing price of IRCTC on the BSE. Shares of IRCTC closed at Rs 734.70, up 1.53 percent over the previous close on BSE. The OFS will open for subscription by institutional investors on Thursday and on Friday for retail investors.
The proceeds from IRCTC OFS will add to the disinvestment kitty of the government. The government has raised Rs 28,383 crore from central public sector enterprises' stake sales so far this fiscal against the full-year budget target of Rs 65,000 crore.