New Delhi: Shares of IRCTC fell more than 5 percent in morning trade on the BSE on Thursday as the sale of the government’s up to 5 percent stake in the company kicked off. The government’s offer-for-sale (OFS) of up to 5 percent stake in Indian Railway Catering and Tourism Corporation (IRCTC) at a floor price of ₹ 680 a share opened for institutional investors on Thursday.
The OFS includes a base issue size of 2 crore shares or 2.5 percent stake, with an option to retain an over-subscription of another 2.5 percent, taking the total issue size to up to 4 crore shares or 5 percent stake.
Till 1125 hours, bids for over 8.75 lakh shares came in, which is about 0.05 times of the base issue size of 2 crore shares.
The indicative bid price is ₹ 683.87 a share, as per NSE data. Shares of IRCTC slid on the bourses on Thursday over Wednesday’s closing price of ₹ 734.70.
The floor price of ₹ 680 for OFS is at a discount of more than 7 percent over Wednesday’s closing price. The stock opened at ₹ 698 and fell 5.38 percent to a low of ₹ 695.20.
The OFS will open for subscription by retail investors on Friday. The government currently holds a 67.40 percent stake in IRCTC.
Proceeds from IRCTC OFS will add to the disinvestment kitty of the government, which has already raised ₹ 28,383 crore from CPSE stake sale so far this fiscal year against the full year budget target of ₹ 65,000 crore.
