scorecardresearchGovt's share sale in IRCTC oversubscribed, investors put in bids worth ₹3,800 crore

Govt's share sale in IRCTC oversubscribed, investors put in bids worth 3,800 crore

Updated: 14 Dec 2022, 11:09 AM IST
TL;DR.
  • In the two-day offer-for-sale (OFS), the government is selling 4 crore shares or 5 percent stake in Indian Railway Catering and Tourism Corporation (IRCTC) at a floor price of 680 a share.
On Thursday, bids for over 5.55 crore shares, representing 3.08 times the base issue size of 1.80 crore shares were put in by institutional investors.

On Thursday, bids for over 5.55 crore shares, representing 3.08 times the base issue size of 1.80 crore shares were put in by institutional investors.

(PTI) The sale of government's up to 5 per cent stake in IRCTC got over-subscribed on the first day of the offer, with institutional investors putting in bids worth 3,800 crore.

In the two-day offer-for-sale (OFS), the government is selling 4 crore shares or 5 percent stake in Indian Railway Catering and Tourism Corporation (IRCTC) at a floor price of 680 a share.

The OFS consists of base issue size of 2 crore shares or 2.5 per cent stake, with an option to retain over-subscription of similar amount.

As much as 10 per cent of the issue is reserved for retail investors, for whom bidding would open on Friday.

On Thursday, bids for over 5.55 crore shares, representing 3.08 times the base issue size of 1.80 crore shares were put in by institutional investors. Calculated on the basis of the floor price, the bids would be valued at about 3,800 crore.

Shares of IRCTC settled at 689.20 apiece, down 6.19 per cent over the previous close on the BSE. During the day, the scrip touched a low of 687, but held above the OFS floor price of 680.

The floor price was at a discount of 7 per cent over Wednesday's closing price of 734.70.

The government holds 67.40 per cent stake in IRCTC.

Proceeds from IRCTC OFS will add to the disinvestment kitty of the government, which has already raised 28,383 crore from CPSE stake sale so far this fiscal year against the full year budget target of 65,000 crore.

 

Article
IPO is the first public issue of the shares of a private company whereas FPO is the second public issue of the shares of an already listed public company.
First Published: 14 Dec 2022, 11:09 AM IST