The Government of India, adding to its public sector selling spree, has decided to sell up to 20% of equity shares of the Indian Railway Catering and Tourism Corporation (IRCTC), a listed public sector enterprise.
After the news broke out, the share price of IRCTC, on Wednesday, plunged; closing at Rs 1,618.05 on the BSE, down by 1.55 per cent from its previous close.
The government said that as of Thursday, non-retail investors would be allowed to bid on and the retail investors will be allowed to bid on Friday. A floor price of ₹ 1,367/share has been set for the sale.
The government will sell up to 2.4 crore IRCTC shares, which would be 2,40,00,000 equity shares of IRCTC representing 15 per cent stake, with an option to additionally sell 80,00,000 shares, representing 5 per cent of the total issued and paid up equity share capital, the company said in a regulatory filing.
The catering and service arm of the Indian Railway, IRCTC, was listed on BSE in October 2019.
The government had also listed four railway companies including IRCON International Ltd, RITES Ltd, Rail Vikas Nigam Ltd and IRCTC on the stock exchange. IRFC is likely to be listed soon.