The Economic Times
English EditionEnglish Editionहिन्दी
| E-Paper
Search
+

    IRCTC stake sale: Merchant banker bid date extended till September 14

    Synopsis

    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.

    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.

    Related Companies

    NSE
    BSE

    PEER COMPANIES

    The government has extended the date for bids from merchant bankers and brokers for divestment of its shareholding in Indian Railway Catering and Tourism Corporation (IRCTC) till September 14.

    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.

    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds.)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    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"
    The Economic Times