The government intends to sell up to 5% of IRCTC via OFS, with a floor price of Rs 680 per share.

 

Through an offer for sale, the government would sell up to 5% of Indian Railway Catering and Tourism Corporation (IRCTC) shares (OFS). The OFS's floor price is fixed at Rs 680 per share, which is 7.4% less than the IRCTC's December 14 closing price of Rs 734.70 on the BSE.

After selling 5% of the share, the promoter (the Government of India) is anticipated to bring in Rs 2,720 crore for the exchequer.

The government plans to sell a 2.5 percent stake via the OFS route, with the possibility of selling an additional 2.5 percent, increasing the total issue size to 4 crore shares or a 5 percent stake.

According to the company's regulatory filing, the promoter plans to sell up to 2,00,00,000 equity shares of IRCTC, or 2.5% of the whole issued and paid-up equity share capital, with the option to sell an additional 2,00,00,000 shares, or 2.5% of the total issued and paid-up equity share capital.

The deadline to subscribe for non-retail investors is December 15, while the deadline for retail investors who want to carry over their unused bids is December 16. The non-retail investors may carry over any unallotted bids to T+1 day that they made on T day.

IRCTC's statement stated that the "T day" on December 15, 2022 (for non-Retail Investors only) and the "T+1 day" on December 16, 2022 (for Retail Investors and non-Retail Investors who wish to carry forward their unallotted bids) would be for non-Retail Investors only.

Axis Capital, Citigroup Global Markets, Goldman Sachs, and JM Financial are the brokers for the OFS acting on behalf of the Seller.