Mumbai, December 10:  Shares of Indian Railway Catering & Tourism Corp (IRCTC) fell 13 percent intraday on December 10 after the company said that the government is planning to sell up to 20 percent stake in the company through an Offer for Sale (OFS) which opened for subscription today.

IRCTC stock was trading at Rs 1,485, down 8 percent at 12 pm on Thursday. IRCTC Makes a Grand Debut on Bourses, Shares Climb 101% Over Issue Price.

The floor price for the offer has been fixed at Rs 1,367. The government would divest 15 percent equity with a 5 percent greenshoe option," said Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey said in a tweet.

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 company said in a regulatory filing.

Last year, IRCTC made a grand debut on Monday morning after its initial public offering (IPO) received the highest ever subscription among PSUs. IRCTC climbed 101 percent to Rs 644, over the issue price of Rs 320.

IRCTC is a Mini-Ratna Category-I Public Sector Enterprise and a wholly-owned subsidiary of Indian Railways, the only entity authorised by Indian Railways to provide catering services to railways, online railway tickets for trains in India. It also provides non-railway services including budget hotels, e-catering and executive lounges to create a one-stop solution for customers.

(With additional inputs from ANI)

(The above story first appeared on LatestLY on Dec 10, 2020 12:10 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website