The government will sell 20% stake in Indian Railway Catering and Tourism Corporation (IRCTC) through an offer for sale.
About IRCTC
IRCTC – the only entity authorised by Indian Railways to provide catering services to railways, online railway tickets and packaged drinking water at railway stations and trains in India – got listed on stock exchanges on October 14 last year.
The company had raised Rs 645 crore through the IPO.
The stock has rallied 151% since its listing.
Total funds to be raised
The government is planning to raise Rs 4,374 crore through its Offer for sale.
Price per share
The price for offer for sale was set at Rs 1,367 per share.
Which is a 15.5% at a discount from closing price of Wednesday.
Details of OFS
The government has proposed to sell 2.4 crore shares.
Which constitute 15% of paid-up share capital of the company with an option to sell an additional 80 lakh shares or 5% stake in case of demand.
Reason for share sell
To meet Sebi’s public holding norms, the government has to lower its stake in the company to 75%
Share holding
The Government of India held 87.4% stake in IRCTC as of 30 September 2020.
In August 2020, the government announced its plan to sell its stake in the company.
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