IRCTC clarifies on reports of govt dropping OFS plans
Premium- IRCTC said it is not aware of any information regarding government dropping OFS plan
Indian Railway Catering and Tourism Corporation (IRCTC) issued clarification to the exchanges on Monday after media reports suggested that the government has dropped its plans for IRCTC's offer for sale (OFS) for now due to volatile market conditions.
"ln this regard, we would like to submit that the Company is not aware of any such information. Also, being a Government Company, such decisions are taken by the Government of lndia. It is further submitted that the "news article" has been published without any inputs of IRCTC's authorized representative of IRCTC," it clarified in the exchange filing today. The reports suggested that government was looking to raise ₹3,000 crore via dilution of 3.5% in IRCTC via offer for sale.
Meanwhile, last week, the state-owned Indian Railways' PSU informed that it has withdrawn the tender for appointing consultant for data monetization. “It is to further inform that due to withdrawal of Personal Data Protection Bill 2018 by the Government of lndia, the above referred E-tender for appointment of Consultant for Data Monetization of lndian Railway/ IRCTC floated by IRCTC, on 29th July, 2022 has been withdrawn," the company said in a regulatory filing on Friday.
IRCTC, a public sector undertaking under the Ministry of Railways, is in a pure monopoly business as it is the only authorized firm to provide online tickets and catering services to the Indian railways. It had entered the primary markets by listing in October 2019.
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The company reported about 200% jump in net profit at ₹245.5 crore for the quarter ending 30 June, 2022 as compared to ₹82.5 crore in the same quarter last year. Meanwhile, IRCTC's revenue from operations soared more than 250% to ₹852 crore in the quarter under review, due to base effect and higher than expected catering revenue amid increase in trains serviced within TSV segment, as against ₹243 crore in the year ago quarter.
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