The government successfully reduces its stake in IRCTC by 20% as OFS progresses

Retail investors took all shares in the Indian Railway Catering and Tourism Corporation (IRCTC) offering for sale on Friday.

A day earlier, the institutional investor portion of the OFS had been subscribed 1.34 times. Through the OFS, the Center has successfully disposed of its 20% stake in the train ticket sales company.

The Center had set the minimum price for SFO at Rs 1,367. However, most of the offers came in around Rs 1,378, data provided by the stock exchanges shows.

IRCTC shares ended at Rs 1,425 on Friday. Following the sale of shares, the government’s stake in IRCTC will drop to 67.4 percent.

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Federal-Mogul OFS pumps again

The promoters of the multinational company Federal-Mogul Goetze face the difficult task of cutting their shareholding to meet the minimum public participation standards of 25 percent.

Both attempts by the promoters to sell their shares to the public have failed. The Offer for Sale (OFS) launched this week received offers for just 22,581 shares compared to 11.5 million on offer.

The previous OFS in October had met a similar fate. Less than 10 percent subscribed. Tenneco, the promoter of Federal-Mogul, a US-based manufacturer of automotive products, has to reduce its stake from the current 96.82% to less than 75% to meet minimum public participation standards in January 2021.

Following an indirect change in ownership, Tenneco launched a mandatory 25 percent open offering in Federal Mogul, which concluded in January. After the open offer, the promoter’s participation went from 74.98% to 96.82%.

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