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IRCTC, IRFC, IRCON listing process begins, govt seeks expression of interest

The Union Finance Ministry on Monday started the process of listing three rail PSUs-IRCTC, IRFC and IRCON. Finance minister Arun Jaitley had announced that the three rail PSUs would be listed during his budget speech on February 1.

The Union Finance Ministry on Monday started the process of listing three rail PSUs-IRCTC, IRFC and IRCON. Finance minister Arun Jaitley had announced that the three rail PSUs would be listed during his budget speech on February 1.

"We will come out with procedure for a time-bound listing of CPSEs. IRTC, IRFC, IRCON to be listed. For CPSEs we will seek opportunities through consolidation," Jaitley had said during his budget speech said.

Here's all you need to know about the listing of IRCTC, IRFC and IRCON:

 

  • The government plans to divest a portion of the paid-up equity share capital through an IPO and has sought Expression of Interest (EoI) from merchant bankers by 16 March.


  • Meanwhile, the Department of Investment and Public Asset Management (DIPAM) is looking for merchant bankers who can manage the initial public offering (IPO) of the three PSUs, which currently is under the Ministry of Railways.


  • After Jaitley's announcement during the budget speech, bankers and experts had estimated that the proposed listings of Indian Railway Catering and Tourism Corporation, Ircon International and Indian Railway Finance Corporation could net the government a total of Rs 100 billion-150 billion rupees.


  • IRCTC is responsible for the catering, ticketing and tourism operations of state-owned Indian Railways. It is also the country's largest online ticketing company. Ircon, meanwhile, is responsible for in transport infrastructure and specialises in engineering and construction.  IRFC is Indian Railways' financing arm.


  • The government currently holds 100% stake in these three companies. In his 2017-18 budget speech, finance minister Arun Jaitley said that the government will put in place a revised mechanism and procedure to ensure time-bound listing of identified CPSEs on stock exchanges as the it will foster greater public accountability and unlock their true value.


  • The government intends to raise Rs 72,500 crore through disinvestment of PSUs in the next fiscal. Of this, Rs 46,500 crore would be raised through disinvestment of minority stake and Rs 11,000 crore through strategic sale.