IRCTC’s OFS received a very good response from non-retail investors and was subscribed 198 per cent on the initial day with an indicative cost of Rs 1,391.42
IRCTC share cost fell 3.5 per cent to Rs 1,400 apiece in intraday offers on BSE on the back of ongoing give-for-sale (OFS). Through this OFS, the government is preparing to sell up to 20 per cent stake in IRCTC at a floor cost of Rs 1,367 apiece. IRCTC’s OFS received a very good response from non-retail investors and was subscribed 198 per cent on the initial day with an indicative cost of Rs 1,391.42. Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey mentioned that retail investors will get a possibility to bid for IRCTC give-for-sale (OFS) on Friday. “We have given a Neutral rating to this OFS as there will be very limited upside left for retail investors also there is no retail discount in this OFS,” mentioned Yash Gupta, Equity Research Associate, Angel Broking Ltd.
IRCTC shares ended 1.84 per cent reduce at Rs 1,425.20 apiece on Friday. DIPAM Secretary mentioned that the challenge was subscribed 1.98 occasions of base size at a clearing cost above the floor cost by non-retail investors. “Government has decided to exercise the greenshoe option,” Pandey added. The promoter proposes to sell up to 2.4 crore equity shares of IRCTC, representing up to 15 per cent stake, with an choice to in addition sell 80 lakh shares, representing 5 per cent of the total issued and paid-up equity share capital, tIRCTC had mentioned in a regulatory filing. In all, the promoter, Government of India will sell 3.2 crore shares, which is anticipated to garner Rs 4,374 crore for the exchequer starved of funds due to the COVID-19 crisis.
In April 2017, the Union Cabinet had authorized listing of 5 railway firms. Out of which IRCON International, RITES Ltd, Rail Vikas Nigam Ltd and IRCTC, have currently been listed. IRFC is most likely to be place on the block this fiscal, according to a PTI report.