Indian Railway Catering and Tourism Corporation (IRCTC) share price gained over 2 percent intraday on September 8 after media reports indicated that the government is planning to sell 15-20 percent of its stake in the company via offer for sale (OFS).
The stock price has seen a steady rise in the last 1 month and was trading at Rs 1,446.70, up Rs 32.30, or 2.28 percent. It has touched an intraday high of Rs 1,459.95 and an intraday low of Rs 1,421.70.
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.