Shares of IRCTC plunge as Government announces OFS

The equity shares of Indian Railway Catering and Tourism Corporation Ltd (IRCTC) fell to an intraday low of Rs. 1405 in BSE during today's trading after the Government of India announced OFS. The stock opened the day at Rs. 1405 as against the previous day close of Rs. 1618.05 and hit an intraday high of Rs. 1524.40. The stock was last trading at Rs. 1495, down by Rs. 123.05 or 7.60%.

The Government of India is set to sell up to 20% stake in IRCTC through Offer for Sale (OFS). Government plans to divest 15% equity with a 5% (Additional 80 lakh shares) green shoe option. The Government will be selling total of 3.2 crore shares which is expected to garner Rs. 4374 crore.

The floor price for the issue has been fixed as Rs. 1367 per share.

The OFS will help the Government to meet partially the disinvestment target of Rs. 2.10 lakh crore.

The OFS opens for subscription today for non retail investors and tomorrow for retail investors. The Government currently holds 87.40% in IRCTC.

Source : Equity Bulls

Keywords