The central government is planning to sell additional part of its stake in Indian Railway Catering and Tourism Corp (IRCTC) in the current financial year and has invited bids from merchant bankers for managing the sale process.
"The GoI intends to disinvest a part of the paid-up equity capital of IRCTC out of its shareholding through 'Offer for Sale (OFS) method of shares by promoters through the stock exchanges' as per Securities and Exchange Board of India (Sebi) Rules and Regulations," Department of Investment and Public Asset Management (DIPAM) said while inviting Request for Proposal (RFP).
The merchant bankers will have to submit their bids by 10 September.
The government currently holds 87.40 percent stake in IRCTC. To meet SEBI's public holding norm, the government has to lower its stake in the company to 75 percent.
Shares of IRCTC closed 1.20 percent at Rs 1,346.65 apiece on the BSE on Thursday.
IRCTC, the only entity authorised by Indian Railways to provide catering services to railways, online railway tickets and packaged drinking water at railway stations and trains in India, was listed on the stock exchanges in October 2019. The company had raised Rs 645 crore through its IPO.
IRCTC OFS (offer for sale) will help the government inch forward in meeting its Rs 2.10 trillion disinvestment target. Of this, Rs 1.20 trillion will come from disinvestment of public sector undertakings and another Rs 90,000 crore from stake sale in financial institutions.