Government To Mop Up Rs 4,374 Crore From IRCTC Offer-For-Sale
The IRCTC OFS closed with strong interest from retail investors and 110% subscription.
The government is expected to garner Rs 4,374 crore from the offer-for-sale of the Indian Railway Catering and Tourism Corp.
The promoter had proposed to sell up to 2,40,00,000 equity shares of IRCTC, representing up to 15% stake, with an option to additionally sell 80,00,000 shares, representing 5% of the total issued and paid up equity share capital.
The floor price for the offer was fixed at Rs 1,367 per share.
"The OFS of IRCTC closed with strong interest from retail investors and 109.84% subscription. With this, IRCTC is now MPS compliant. We thank all investors for their participation and making the deal so successful," Department of Investment and Public Asset Management Secretary Tuhin Kanta Pandey tweeted.
MPS refers to Securities and Exchange Board of India's minimum public shareholding norms.
In all, the promoter - Government of India, will sell 3.2 crore shares, which is expected to garner Rs 4,374 crore for the exchequer starved of funds due to the Covid-19 crisis.
The IRCTC OFS will help the government in meeting the Rs 2.10 lakh crore disinvestment target for this fiscal.
Of this, Rs 1.20 lakh crore will come from disinvestment of public sector undertakings and another Rs 90,000 crore from stake sale in financial institutions.
The government holds 87.40% stake in IRCTC.
To meet SEBI's public holding norms, the government has to lower its stake in the company to 75%.