Shares of Indian Railway Catering and Tourism Corporation (IRCTC) fell 4 percent in morning trade on BSE on September 9 amid reports that the government might sell some stake in the company.
As per media reports, the government is planning to sell 15-20 percent of its stake in the company via offer for sale (OFS).
The Department of Disinvestment has invited bids for the appointment of merchant bankers and selling brokers, as per a news report.
Bids will have to be submitted from September 4-10. The bidding process will begin on September 11. A Central Public Sector Enterprise (CPSE), IRCTC is the only entity authorised by Indian Railways to provide catering services to railways, online railway tickets and packaged drinking water at railway stations and trains in India.
"The GoI intends to disinvest a part of the paid-up equity capital of IRCTC out of its shareholding through 'Offer for Sale (OFS) method of shares by promoters through the stock exchanges' as per Securities and Exchange Board of India (SEBI) Rules and Regulations," DIPAM said while inviting Request for Proposal (RFP), as quoted by PTI.
The IRCTC OFS will help the government move closer to its Rs 2.10 lakh crore disinvestment target. Of this, Rs 1.20 lakh crore will come from disinvestment of public sector undertakings and another Rs 90,000 crore from stake sale in financial institutions.
Shares of IRCTC traded 3.31 percent lower at Rs 1332.45 on BSE at 11:10 hours.