Monday, January 30, 2023
HomeBusinessIndian Railways (IRCTC) Stock Down After Centre Says It Will Sell 5%

Indian Railways (IRCTC) Stock Down After Centre Says It Will Sell 5%

Shares of IRCTC fell above Wednesday’s price on the stock exchanges on Thursday. (Representative)

New Delhi:

Shares of IRCTC fell more than 5 percent in morning trading on the BSE on Thursday as sales of up to 5 percent of the government’s stake in the company began.

The government’s (OFS) offer of up to 5 percent stake in Indian Railway Catering and Tourism Corporation (IRCTC) at a floor price of Rs 680 per share opened to institutional investors on Thursday.

The OFS includes a base issue of 2 crore shares or a stake of 2.5 per cent, with an option to maintain an over-subscription of an additional 2.5 per cent, bringing the total issuance to a maximum of 4 crore shares or a stake of 5 percent.

As of 1125 hours, bids for more than 8.75 lakh shares have been pouring in, which is about 0.05 times the base issue size of 2 crore shares.

The indicative bid price is Rs 683.87 per share, according to NSE data. Shares of IRCTC fell above Wednesday’s closing price of Rs 734.70 on the exchanges on Thursday.

The bottom price of Rs 680 for OFS is at a discount of more than 7 percent from Wednesday’s closing price. The share opened at Rs 698 and fell by 5.38 percent to a low of Rs 695.20.

The OFS will open for subscription by retail investors on Friday. The government currently owns a 67.40 percent stake in IRCTC.

Proceeds from IRCTC OFS will contribute to the Government’s Divestment Fund which has already raised Rs 28,383 crore from the sale of CPSE interests so far this fiscal year against the full year budget target of Rs 65,000 crore.

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(Except for the headline, this story has not been edited by NDTV staff and is being published from a syndicated feed.)

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