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By Malvika Gurung
Investing.com — The central government will sell up to a 5% stake in the e-ticket booking platform for Indian Railways, IRCTC (NS:) through an offer for sale route.
The floor price for the event has been fixed at Rs 680/share, which is at a discount of over 7% compared to Wednesday’s closing price. By selling a 5% stake in IRCTC, the promoter (Govt) aims to generate around Rs 2,720 crore.
According to the state-owned giant’s latest filing to the bourses, the government proposes to offload up to 2,00,00,000 equity shares of face value of Rs 2 each through the OFS route, representing 2.5% of the total issued and paid-up equity share capital of IRCTC.
The seller will have the option to sell an additional 2,00,00,000 shares of the company besides the 2 crores already being offloaded, taking the total to 4,00,00,000 equity shares, representing 5% of the total issued and paid-up equity share capital of the company.
Non-retail investors will be allowed to place their bids on Dec 15 on a separate window from 9:15 am to 3:30 pm IST, while retail investors will be able to place their bids on Dec 16.
The allocation shall be at or above the set floor price on a price priority basis. A minimum of 25% of the Offer Shares shall be reserved for Mutual Funds and Insurance companies, noted the filing.
The Government’s brokers on the deal will be Axis Capital, Citigroup (NYSE:) Global Markets, Goldman Sachs (NYSE:) and JM Financial (NS:).
The PSU’s shares tanked 4.9% to Rs 699 apiece at the time of writing.
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