IRCTC slumps nearly 10 per cent after government plans to sell 20 per cent stake

Indian Railway Catering & Tourism Corporation (IRCTC), a subsidiary of the Indian Railways closed 10.27 per cent down on Thursday after the government announced to sell 20 per cent of its stake through an offer for sale (OFS).

The promoter plans to sell 2,40,00,000 equity shares of the company with an option to additionally sell 80,00,000 shares. The company has set a floor price of Rs 1,367 per share for the sale. It is expected to raise around Rs 4,374 crore through this issue. Non-institutional investors are allowed to place bids by December 10, 2020, while retail investors can place their bids by December 11, 2020.

The government currently has 87.4 per cent as of September 2020 and the public shareholders have 12.6 per cent.

IRCTC provides catering services to railways, online railway tickets, and packaged drinking water at railway stations & trains in India.

Its share closed down by 10.27 per cent at Rs 1,451.95. It recorded an intraday high of Rs 1,524.4 and an intraday low of Rs 1,405 on BSE. The share has a 52-week high value of Rs 1,995 and a 52-week low value of Rs 774.85.