The Government of India has proposed to sell up to 2.4 million shares of IRCTC, representing 15% of the company’s paid share capital through the offer-for-sale route. The government has also proposed an additional share sale of 0.8 million shares, representing 5% of paid-in capital, in the event of oversubscription. Together, the size of the base offering and the oversubscription option represent 20% of the company’s outstanding shares or 3.2 million shares.
The sale of IRCTC shares will take place in a separate window of the stock exchanges on December 10 and December 11. Only retail investors will be able to place their shares on December 11.
The minimum bid price will be ₹1,367 per share. The price under the sell offer path is 16% off today’s closing price.
IRCTC shares today had closed 1.5% lower at ₹1618.05.
As of September 30, the government had an 87.40 stake in IRCTC, which was made public last year.
IRCTC shares had reached a 52-week high of ₹1995 in February of this year before falling to ₹774.85 in March amid pandemic-induced selloff in equity markets.
IRCTC had reported a 67.3% drop in net profit for ₹Rs 32.63 crore for its second quarter ending September 30, 2020 compared to ₹99.82 million rupees, a year ago.
The company’s operating income during the quarter fell 83% to ₹88 crore compared to ₹533 million rupees in the same quarter, last year.
IRCTC, a public sector company (PSU) of the Ministry of Railways, is the only entity authorized by the Indian Railways to provide catering services to railways, online train tickets and bottled drinking water at stations and trains of India.
Last month, the railways suspended operations of its IRCTC-operated corporate trains from Lucknow to Delhi and Ahmedabad to Mumbai as few buyers were found.
The Indian Railway Catering and Tourism Corporation Limited (IRCTC), a public sector company (PSU) of the Ministry of Railways, had restarted the operation of its fleet of Tejas Express trains since October 17, after it was suspended due to the pandemic.
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