Indian Railway Catering and Tourism Corporation (IRCTC) slumped 8.11% to Rs 1486.90 as the offer for sale (OFS) opened for non-retail investors today.
Through the OFS, the company's promoter Government of India proposes to sell over 2.40 crore shares, constituting 15% paid-up share capital of the company, with an option to sell an additional 5% stake or 80 lakh equity shares (oversubscription option).
The Government of India held 87.4% stake or 13,98,40,000 shares of IRCTC as of 30 September 2020.
The floor price for the OFS was set at Rs 1,367 per shares, at a 15.52% discount to IRCTC's closing price of Rs 1,618.05 on Wednesday, 9 December 2020.
The OFS opened on Thursday (10 December 2020) for non-retail investors, while both retail as well as non-retail investors will be able to subscribe on Friday (11 December 2020).
A total of 10% of the offer size, aggregating to over 24 lakh shares, has been reserved for retail investors.
As on 11:15 IST, the OFS received subscription for 71,40,739 shares or 33.06% against the base non-retail offer size of 2.16 crore shares.
IRCTC, a Mini Ratna public sector enterprise under the administrative control of Ministry of Railways, is the sole entity authorized by Indian Railways (IR) to provide catering services to railways, online railway tickets and packaged drinking water at railway stations and trains in India. IRCTC operates in four business segments, namely, internet ticketing, catering, packaged drinking water and travel & tourism.
The company posted a 67.3% decline in net profit to Rs 32.63 crore in Q2 September 2020 from Rs 99.82 crore in Q2 September 2019. Total revenue declined 80% to Rs 108.72 crore in Q2 September 2020 from Rs 535.13 crore in Q2 September 2019.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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