New Delhi: The Modi government of the Center is now preparing to sell more stake in Indian Railway Catering and Tourism Corporation (IRCTC). This sale will be a part of the ambitious plan of the Modi government of the Center, under which the government wants to collect 2.1 lakh crore rupees from disinvestment in this financial year i.e. 2020-21.
It is noteworthy that after the IPO of IRCTC last year, the share of Central Government in IRCTC was reduced to 87.40%. According to media reports, the Department of Disinvestment has started appointing merchant bankers and selling brokers to sell stake in IRCTC. This sale will be done through OFS. The pre-bid meeting for OFS has been done and now the bidding process is likely to start from September 11.
Through the offer for sale, OFS route, a listed company sells shares on the exchange platform itself. This is a special window, which is available only to the top 200 companies. In this, at least 25% of the shares are reserved for institutional investors such as mutual funds or insurance companies. Promoters of listed companies in the stock market use it to reduce their stake. Through the IPO that came in September 2019, the government reduced its stake in IRCTC by 12.60%. Earlier, the government had a 100 percent stake in IRCTC.
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