Latest News | IRCTC OFS Closes; Govt to Mop Up Rs 4,374 Crore

New Delhi, Dec 11 (PTI) The government is expected to garner Rs 4,374 crore from the Offer for Sale (OFS) of the Indian Railway Catering and Tourism Corp (IRCTC) which closed on Friday.

The promoter had proposed to sell up to 2,40,00,000 equity shares of IRCTC, representing up to 15 per cent stake, with an option to additionally sell 80,00,000 shares, representing 5 per cent of the total issued and paid up equity share capital.

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The floor price for the offer was fixed at Rs 1,367.

"The OFS of IRCTC closed with strong interest from retail investors and 109.84% subscription. With this, IRCTC is now MPS compliant. We thank all investors for their participation and making the deal so successful," Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey tweeted.

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MPS refers to Sebi's minimum public shareholding norms.

In all, the promoter Government of India will sell 3.2 crore shares, which is expected to garner Rs 4,374 crore for the exchequer starved of funds due to the COVID-19 crisis.

The IRCTC OFS will help the government in meeting the Rs 2.10 lakh crore disinvestment target for this fiscal.

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.

The government holds 87.40 per cent stake in IRCTC.

To meet Sebi's public holding norms, the government has to lower its stake in the company to 75 per cent.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)