Print   Close

Govt to sell up to 20% stake in IRCTC, share slips 13%

BusinessToday.In     December 10, 2020

IRCTC share fell over 13% in trade today after the government initiated the offer for sale (OFS) today for paring its stake by 20%. The two-day OFS  will open today for non-retail investors today. Retail investors will be able to buy shares of the public sector undertaking (PSU) on December 11. The government will sell 3.2 crore shares, which is expected to fetch Rs 4,374 crore for the exchequer starved of funds due to the COVID-19 crisis.

IRCTC stock opened with a loss of 13.17% at Rs 1,405 against previous close of Rs 1,618 today. The stock has lost 11% in last 3 days. It trades higher than 20 day, 50 day, 100 day and 200 day moving averages but lower than 5 day moving averages.

The share has climbed 73% in one year and gained 60.28% since the beginning of this year.

Market cap of the firm fell to Rs 23,747 crore.

"Offer for Sale in IRCTC opens tomorrow for Non Retail investors. Day 2 for retail investors. Govt. would divest 15 per cent equity with a 5 per cent green shoe option," Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey said in a tweet.

Stocks in news: TCS, Maruti Suzuki, IRCTC, L&T Tech, Pfizer, Torrent Pharma

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.

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. Shares of IRCTC on Wednesday closed at Rs 1,618.05 apiece on the BSE, down 1.55 per cent from its previous close.

Share Market News Live: Sensex drops over 300 points, Nifty at 13,430; HDFC, TCS, HUL, Wipro, L&T top losers

URL for this article :
@ Copyright 2019 India Today Group.