Indian Railway Catering and Tourism Corporation (IRCTC) declined 5 percent in early trade on December 15 as the government's stake sale via OFS kicked off.
After opening, the stock fell 5.25 percent, its biggest slide since 29 August when it lost over 7 percent. At 9:45 am, the stock was quoting at Rs 700.95 apiece, lower by 4.62 percent.
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The government is selling up to 5 percent stake in the company through an offer for sale (OFS) at floor price of Rs 680 per share, expecting to garner Rs 2,720 crore for the exchequer.
It intends to sell a 2.5 percent stake, with the option to sell an extra 2.5 percent, bringing the total issue size to 4 crore shares or 5 percent stake.
Non-retail investors can subscribe on December 15 while retail investors who choose to carry forward their unallotted bids can subscribe on December 16. The non-retail investors who have placed their bids on T day can carry forward their unallotted bids to T+1 day.
The brokers for the OFS on behalf of the seller are Axis Capital, Citigroup Global Markets, Goldman Sachs and JM Financial.
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For the quarter ended September 2022, IRCTC reported a 42 percent rise in net profit at Rs 226 crore. Revenue from operations surged 99 percent to Rs 806 crore in the September quarter from Rs 405 crore in the same quarter last fiscal. Its total income surged 105 percent to Rs 832 crore in Q2FY23 from Rs 405 crore in Q2FY22.