Published 10:05 IST, August 20th 2020
Centre plans disinvestment in IRCTC via offer for sale; DIPAM invites bids
Centre is planning to reduce its stake in the Indian Railway Catering and Tourism Corporation via offer for sale as bids have been invited for disinvestment.
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Central Government is planning to reduce its stake in Indian Railway Catering and Tourism Corporation (IRCTC) via offer for sale (OFS). Department of Investment and Public Asset Manment (DIPAM) has invited bids for appointment of merchant bankers and selling brokers. government at present has a shareholding of 87.4% in railway catering services company, which was listed on Indian stock markets last year.
Reports state that a meeting in this regard is to be held on September 3 followed by invitation of bids by government between September 4 to September 10 and bids will be opened on September 11.
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Interested parties to make a presentation
government is also considering to allot shares to eligible employees of IRCTC after completion of OFS. employees might be given at a discounted price or at lowest cut off price.
interested parties may bid separately or in collaboration with qualified bidders required to make a presentation in front of an inter-ministerial group, after which a final decision will be taken.
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IRCTC remains only Railway service company that handles catering, tourism and online ticketing operations with around 5,50,000 to 6,00,000 bookings every day. It h launched its IPO (Initial Public Offering) last year on September 30. company sold 12.6% share through IPO after which its shareholding came to 87.4%.
base price of shares was set between Rs 315 and Rs 320, however, IPO was massively oversubscribed and when listing went live by mid-October share price opened at a Rs 625 and Rs 646 on NSE and BSE respectively its prices shot up. As on August 19, 2020, share price is at Rs 1354.95.
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10:05 IST, August 20th 2020