The share price of Indian Railway Catering & Tourism Corporation (IRCTC) slipped 13 percent intraday on Thursday after the company said that the government is planning to sell up to 20 percent stake in the company via offer for sale (OFS) route. The subscription for the OFS opens today, with the floor price fixed at Rs 1,367.
The stock fell as much as 13 percent to Rs 1,405 per share on the NSE. At 11 am, the shares were trading 7 percent lower at Rs 1,503.
The company's regulatory filing said that the promoter proposed to sell up to 2,40,00,000 equity shares of IRCTC, representing up to 15 percent stake, with an option to additionally sell 80,00,000 shares, representing 5 percent of the total issued and paid-up equity share capital.
The Government of India will sell 3.2 crore shares, which will raise Rs 4,374 crore for the exchequer starved of funds due to the COVID-19 crisis. As of September 30, the government had an 87.40 stake in IRCTC.
Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey said in a tweet, "Offer for Sale in IRCTC opens tomorrow for Non Retail investors. Day 2 for retail investors. Govt. would divest 15 percent equity with a 5 percent green shoe option."
In September quarter earnings, the company had reported a 67.3 percent slip in net profit to Rs 32.63 crore as compared to Rs 99.82 crore in the corresponding quarter last year. Revenue from operations plunged 83 percent to Rs 88 crore as compared to Rs 533 crore a year ago.