The department of investment and public asset management (Dipam) has invited bids from merchant bankers and brokers to divest 15-20% of the government's shareholding of 87.4% through an offer for sale (OFS) in the central public sector enterprise, which was listed on the bourses last year.
Bids were earlier sought between September 4 and 10.
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.
IRCTC’s shares closed 1.58% up on the Bombay Stock Exchange at Rs 1,370.6, on Thursday.
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1 Comment on this Story
Sachin Vashishtha40 days ago
I think as a retail investor we should move out of IRCTC as the OFS hang over will be there. For further details you can subscribe my channel "Subscribe4stocks"