Shares of Indian Railway Catering and Tourism Corporation (IRCTC) jumped nearly 6 percent on Monday after the firm's offer for sale (OFS) concluded successfully on Friday, where the government divested a 20 percent stake in the firm.
The Government of India sold 3.2 crore shares, which will raise Rs 4,374 crore for the exchequer starved of funds due to the COVID-19 crisis.
The retail investor's portion of the OFS was fully subscribed while the institutional investor portion was subscribed 1.34 times. Post the share sale, the government's stake in IRCTC will reduce to 67.4 percent from 87.4 percent earlier.
The stock rose as much as 5.8 percent to Rs 1,508 per share on BSE.
The floor price for the OFS, which was held on Thursday and Friday, was set at Rs 1,367 per share.
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.
IRCTC provides catering services, online railway tickets and packaged drinking water at railway stations and trains across India.
The stock was listed on the stock exchanges in October 2019.
(Edited by : Ajay Vaishnav)
First Published: IST