IRCTC share falls over 3% on second day of offer for sale

IRCTC share fell over 3 percent on the second day of offer for sale (OFS) today. Share of IRCTC slipped 3.58% intra day to Rs 1,400 against previous close of Rs 1,451 on BSE. The large cap stock has lost 15.5% in the last 4 days. The stock opened with a loss of 3.3%  at Rs 1,404 today.

The share trades higher than 20 day, 50 day, 100 day and 200 day moving averages but lower than 5 day moving averages. The large cap share has gained 65.74% in one year and risen 53.435 since the beginning of this year.

Market cap of the firm fell to Rs 22,896 crore on BSE. The offer for sale (OFS) of Indian Railway Catering and Tourism Corp (IRCTC) for non-retail investors was subscribed 198 percent on the first day of bidding on December 10. On the first day, the share opened with a loss of 13.17% at Rs 1,405 against previous close of Rs 1,618.

The issue will close today.

On day 1 of the offer, non-retail category saw subscription of 4,27,68,445 equity shares against the base offer size of 2,40,00,000. "The government plans to sell up to 2,40,00,000 equity shares of IRCTC, representing up to 15 per cent stake, with an option to additionally sell 80,00,000 shares, representing 5 per cent of the total issued and paid up equity share capital," the company said in a regulatory filing.

Why IRCTC share has gained 26% in three sessions

The floor price for the OFS has been fixed at Rs 1,367. Currently, the government holds 87.40 per cent stake in IRCTC. To meet Sebi's public holding norm, it has to lower its stake in the company to 75 per cent.

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