Government to reduce IRCTC shareholding via offer for sale

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The federal government will scale back its shareholding in Indian Railway Catering and Tourism Company (IRCTC) by way of a proposal on the market.

The division of funding and public asset administration (Dipam) has invited bids from service provider bankers and brokers to divest a part of the federal government’s shareholding of 87.4% within the central public sector enterprise, which was listed on the bourses final yr.

Bids have been sought between September Four and 10 and they are going to be opened on September 11. A pre-bid assembly might be held on September 3.

The federal government can also be contemplating allotting shares to eligible and prepared staff of IRCTC at a reduction to the difficulty, or found value (lowest lower off value), subsequent to completion of the OFS.

“The proportion and extent shall be determined in the end,” the federal government stated within the bid doc.

As per the standards, bidders ought to have dealt with and accomplished at the very least one home fairness difficulty of Rs 1,000 crore upwards between April 2017 and June 2020. events can bid individually or as a consortium. Certified bidders must make presentation earlier than an inter-ministerial group, following which a last choice might be taken.

IRCTC is the one entity authorised to supply catering and on-line ticket reserving providers for Indian Railways. It is usually the only real supplier of packaged consuming water on trains and in any respect railway stations.

IRCTC’s preliminary public providing had a blockbuster opening on the inventory change in October final yr. The corporate’s shares have been listed at Rs 644 a bit, greater than double the IPO value of Rs 320 per share. The federal government had raised Rs 645 crore by promoting 12.6% stake at the moment.

On Wednesday, IRCTC’s shares closed 1.06% decrease on the Bombay Inventory Alternate at Rs 1,363.

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