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IRCTC share price slips over 2% on report govt to sell stake via OFS

BusinessToday.In     August 20, 2020

IRCTC share price fell in early trade today amid report government plans to pare its stake in the arm of Indian Railways through offer for sale route. Share price of IRCTC lost 2.39% to Rs 1,330 against previous close of Rs 1,363 on BSE.

IRCTC stock has lost 2.34% in the last 3 days. However, the share has gained 45% since the beginning of this year. Total 0.52 lakh shares changed hands amounting to turnover of Rs 7.06 crore. Market cap of the firm stood at Rs 21,631 crore.

The share sale will be part of the Narendra Modi government's ambitious  Rs 2.1 lakh crore disinvestment process for fiscal 2020-21. After the IPO of IRCTC held last year, stake of the government in IRCTC has been reduced to 87.40%.

Govt may sell stake in IRCTC through offer for sale route

According to a CNBC-Awaaz report, the Department of Disinvestment has invited bids for the appointment of merchant bankers and selling brokers.

The pre-bid meeting for the OFS will be held on September 3, the report stated, adding that bids will have to be submitted from September 4-10. The bidding process will begin on September 11.

Through the OFS route, a listed company can sell its shares via exchange platform itself. In an OFS, a minimum of 25% of shares offered are reserved for institutional investors such as mutual funds and insurance companies. 

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