Shares of Indian Railway Catering and Tourism Corporation (IRCTC) fell as much as 13 per cent to hit an intraday low of Rs 1,405 after the government proposed to sell up to 20 per cent equity stake in the company. The government will raise Rs 4,374 crore through an offer for sale (OFS) on Thursday and Friday. A floor price of Rs 1,367 per share has been set for the sale. Non-retail investors would be allowed to bid on Thursday, and retail investors on Friday. The government currently holds a 87.4 per cent stake in the Rs 2,275-crore public sector railway undertaking, which was listed on the bourses last year.
The government plans to sell up to 2.4 crore IRCTC shares, representing 15 per cent of the company’s paid-up equity share capital, to non-retail investors on December 10, 2020, IRCTC said in a regulatory filing to the stock exchanges.
On December 11, 2020, the offer will be open for retail investors and non-retail investors who choose to carry forward their un-allotted bids with an option to additionally sell 80 lakh equity shares (representing five per cent), IRCTC added.
As of 12:04 IRCTC shares traded 8.35 per cent lower at Rs 1,483, underperforming the Sensex which was down 0.73 per cent.