IRCTC OFS closes; Government to clear Rs 4,374 crore

The government is expected to get Rs 4,374 crore from the Indian Railway Catering and Tourism Corp (IRCTC) Offer for Sale (OFS) which closed on Friday.

The promoter had proposed to sell up to 2.40,00,000 shares of IRCTC capital, representing up to 15 percent of the stake, with the option to additionally sell 80,00,000 shares, representing 5 percent of the total issued shares. and disbursed. capital.

The minimum bid price was set at Rs 1,367.

“IRCTC OFS closed with strong retail investor interest and 109.84% underwriting. With this, IRCTC is now MPS compliant. We thank all investors for their participation and for making the deal so successful. “said the Department of Investment and Management of Public Assets (DIPAM Secretary Tuhin Kanta Pandey tweeted.

MPS refers to Sebi’s Minimum Public Participation Standards.

In total, the Indian Government promoter will sell 3.2 million shares, which is expected to generate Rs 4.374 crore for private fund treasury due to the COVID-19 crisis.

The IRCTC OFS will help the government meet the divestment target of Rs 2.10 crore for this fiscal.

Of this, Rs 1.20 crore will come from the divestment of public sector companies and a further Rs 90bn from the sale of stakes in financial institutions.

The government has an 87.40 percent stake in IRCTC.

To comply with Sebi’s public participation rules, the government has to reduce its stake in the company to 75 percent.