Govt To Sell Up To 5 Pc Stake In IRCTC On Thursday; Floor Price, At Rs 680 A Piece

The government will on Thursday sell up to 5 per cent stake in IRCTC through an offer for sale (OFS) at a floor price of Rs 680 a share. The OFS includes base issue size of 2 crore shares or 2.5 per cent stake, with an option to retain over-subscription of another 2.5 per cent, taking the total issue size to 4 crore shares or 5 per cent stake. At the floor price of Rs 680 a share, sale of 4 crore shares in Indian Railway Catering and Tourism Corporation (IRCTC) would fetch about Rs 2,700 crore to the exchequer.

The floor price is at a discount of 7.4 per cent over Wednesday's closing price of IRCTC on the BSE. Shares of IRCTC closed at Rs 734.70, up 1.53 per cent over previous close on BSE. The OFS will open for subscription by institutional investors on Thursday and on Friday for retail investors. The proceeds from IRCTC OFS will add to the disinvestment kitty of the government. The government has raised Rs 28,383 crore from central public sector enterprises' stake sale so far this fiscal against the full year budget target of Rs 65,000 crore.

(PTI)