BIds for IRCTC stake sale will have to be submitted by September 10
Shares of Indian Railways’ catering and ticketing service provider Indian Railway Catering and Tourism Corporation (IRCTC) rose nearly 1 per cent in Friday’s morning trade after the government invited bids to sell part of its stake in it. The Department for Investment and Public Asset Management (DIPAM) has issued an official Request for Proposal (RFO) in the regard.
In Friday’s trading, the IRCTC stock went up by 0.90 per cent to hit the intra-day high of Rs 1,359 per share. At 12:50 pm, the stock had pared some of the gains but was still trading half a per cent in the green.
“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,” the RFP stated.
According to the RFP, the merchant bankers will have to submit their bids by September 10. The government currently holds 87.40 per cent stake in IRCTC. To meet Sebi’s public holding norm, the government has to lower its stake in the company to 75 per cent.
IRCTC Offer For Sale (OFS) will help the government inch forward in meeting the Rs 2.10 lakh crore disinvestment target. Of this, Rs 1.20 lakh crore will come from disinvestment of public sector undertakings and another Rs 90,000 crore from stake sale in financial institutions.
According to news agency PTI, so far in the current fiscal, DIPAM has not been able to sell stake in any CPSE as the coronavirus outbreak has impacted equity markets. However, through Bharat Bond ETF-II, the government has garnered subscription worth Rs 11,000 crore for ‘AAA’ rated bonds of CPSEs.
