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    Government to reduce IRCTC shareholding via offer for sale

    Synopsis

    The department of investment and public asset management (Dipam) has invited bids from merchant bankers and brokers to divest part of the government's shareholding of 87.4% in the central public sector enterprise, which was listed on the bourses last year.

    Bids have been sought between September 4 and 10 and they will be opened on September 11. A pre-bid meeting will be held on September 3.
    The government will reduce its shareholding in Indian Railway Catering and Tourism Corporation (IRCTC) through an offer for sale.

    The department of investment and public asset management (Dipam) has invited bids from merchant bankers and brokers to divest part of the government's shareholding of 87.4% in the central public sector enterprise, which was listed on the bourses last year.

    Bids have been sought between September 4 and 10 and they will be opened on September 11. A pre-bid meeting will be held on September 3.

    The government is also considering allotting shares to eligible and willing employees of IRCTC at a discount to the issue, or discovered price (lowest cut off price), subsequent to completion of the OFS.

    “The percentage and extent shall be decided in due course,” the government said in the bid document.

    As per the criteria, bidders should have handled and completed at least one domestic equity issue of Rs 1,000 crore upwards between April 2017 and June 2020. Interested parties can bid separately or as a consortium. Qualified interested bidders will have to make presentation before an inter-ministerial group, following which a final decision will be taken.

    IRCTC is the only entity authorised to provide catering and online ticket booking services for Indian Railways. It is also the sole provider of packaged drinking water on trains and at all railway stations.

    IRCTC’s initial public offering had a blockbuster opening on the stock exchange in October last year. The company’s shares were listed at Rs 644 a piece, more than double the IPO price of Rs 320 per share. The government had raised Rs 645 crore by selling 12.6% stake at that time.

    On Wednesday, IRCTC’s shares closed 1.06% lower on the Bombay Stock Exchange at Rs 1,363.
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    3 Comments on this Story

    Leon Fernandes60 days ago
    good decision.
    Praveen Gorthi62 days ago
    Sell when things are too bright ... Cash the noise...
    NARAIN63 days ago
    Target 960/-
    The Economic Times