Shares of Indian Railway Catering & Tourism Corp (IRCTC) fell 13 percent intraday on December 10 after the company said that the government is planning to sell up to 20 percent stake in the company through an Offer for Sale (OFS) which opens for subscription today.
The floor price for the offer has been fixed at Rs 1,367.
"Offer for Sale in IRCTC opens tomorrow for Non Retail investors. Day 2 for retail investors. The government would divest 15 percent equity with a 5 percent green shoe option," Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey said in a tweet.
The promoter proposes to sell up to 2,40,00,000 equity shares of IRCTC, representing up to 15 percent stake, with an option to additionally sell 80,00,000 shares, representing 5 percent of the total issued and paid up equity share capital, the company said in a regulatory filing.
Also Read: Govt to sell up to 20% stake in IRCTC via OFS; fixes floor price of Rs 1,367 per share
In all, the promoter- Government of India- will sell 3.2 crore shares, which is expected to garner Rs 4,374 crore for the exchequer starved of funds due to the COVID-19 crisis.
At 09:31 hrs, IRCTC - Indian Railway Catering & Tourism Corp was quoting at Rs 1,468.50, down Rs 149.25, or 9.23 percent on the BSE.
With inputs from PTI
