IRCTC shares tank 5% as two-day OFS kicks off. Key details

Shares of Indian Railway Catering and Tourism Corporation (IRCTC) tanked 5 per cent in Thursday's trade as the offer for sale (OFS) by the government to offload up to 5 per cent equity in the railways ticketing company kicked off. The scrip fell 5.17 per cent to hit a low of Rs 696.70 on BSE.

The OFS includes a base issue size of two crore shares or 2.5 per cent stake, with an option to retain over-subscription of another 2.5 per cent, taking the total issue size to 4 crore shares or 5 per cent stake. In the two-day OFS, bids for only non retail category has been opened for subscription today.

By 10 am, non-retail investors bade for 4,95,420 shares or 2.75 per cent of the 18,000,000 shares reserved for the category, BSE date showed.  A total of 10 per cent of the offer size is reserved for the retail category, which can participate in the OFS on Friday. Non-retail investors, who choose to carry forward their unallotted bids, will be allowed to revise their bids on Friday.

At the floor price of Rs 680 a share, sale of four crore shares in IRCTC would garner Rs 2,700 crore to the exchequer. The floor price was at 7.44 per cent discount to Wednesday's closing price of Rs 734.70 on BSE.

The offer is taking place on a separate window of the stock exchanges from 9:15 a.m. to 3:30 p.m. (Indian Standard Time) on both days. Those non-retail investors who have placed their bids on T day and have chosen to carry forward their bids to T+1 day, shall be allowed to carry forward and also revise their bids on T+1 day as per the OFS guidelines.

Only retail Investors will be allowed to place their bids on T+1 day, i.e., December 16, 2022. Further, those non-retail investors who have placed their bids on T day and have chosen to carry forward their unallotted bids to T+1 day, will be allowed to revise their bids on T+1 day as per the OFS Guidelines.

Also Read: Govt to sell up to 5% stake in IRCTC via OFS; floor price fixed at Rs 680 per share